JOHN KEELLS HOLDINGS PLC ANNUAL REPORT 2021/2022 HIGHLIGHTS

JOHN KEELLS HOLDINGS PLC
Annuul Report
SL11INC 1BL PACL...
At 'ohn leells Eoldlngs we ure pleused thut the
declslve uctlons und prouctlve strutegles udopted
over the yeurs ln the fuce of muny uncertulntles,
huve strongly posltloned us to cupltullse on the
opportunltles now presented by un emerglng
economy. lor over u century, our products,
servlces und lnteructlons wlth soclety huve
touched the llves of muny ucross Srl Lunku.
ln thls slgnlflcunt moment when ull eyes ure on
Srl Lunku, 'ohn leells Eoldlngs ls reudy to set the
puce und leud the wuy ln to u new duy.
Puge
Croup Bighlights
About us =
Operutlng hlghllghts und slgnlflcunt events 6
llnunclul uchlevements und gouls 6
llnunclul hlghllghts yeur ut u glunce ,
Chulrmun's messuge 8
Management Discussion and Analysis
Consollduted Croup performunce z
Croup flnunclul posltlon, llquldlty und cupltul resources ,
lndustry group unulysls
lndustry group jnancal ngnlgnts
1ransportaton zo
Lesure z,
lroperty z6
consumer |oods etal z
|nancal Servces ,z
lnjormaton 1ecnnology ,,
Ctner ncludng llantaton Servces ,8
Portfollo movement und evuluutlon o
Shure lnformutlon o-
People, Processes and Covernance
1he power of people und processes o
8ourd of Llrectors =z
Croup Lxecutlve Commlttee =o
Croup Operutlng Commlttee ==
Corporute governunce =,
Commlttee reports 6
Rlsk munugement ,z
Iinancial Information
Annuul Report of the 8ourd of Llrectors ,6
1he Stutement of Llrectors' Responslblllty 8o
Report of the Audltors 8=
8ulunce sheet 86
lncome stutement 8,
Cush flow stutement 88
Stutement of chunges ln equlty c
Notes to the flnunclul stutements z
Lconomlc vulue stutement --
Supplementary Information
Elstory of the 'ohn leells Croup -o
Lecude ut u glunce -=
lndlcutlve US dollur flnunclul stutements -6
Croup reul estute portfollo -8
Croup dlrectory oc
Srl Lunkun economy o-
Clossury of flnunclul terms oo
Corporute lnformutlon o=
Notlce of meetlng o6
lorm of proxy o,
CROUP BICBLICB1S
=
A8OU1 US
'ohn leells Eoldlngs PLC ('lE) ls Srl Lunku's lurgest llsted compuny, wlth buslness lnterests ln
1runsportutlon, Lelsure, Property, Consumer loods & Retull, llnunclul Servlces und lnformutlon
1echnology, umong others. Slnce lts modest beglnnlngs us u produce und exchunge broker ln the
eurly 8,cs, 'lE hus been known to constuntly reullgn, reposltlon und relnvent ltself ln pursulng
growth sectors of the tlme. Our lnvestment phllosophy ls bused on u posltlve outlook, bold upprouch,
commltment to dellvery und flexlblllty to chunge. 'lE ls ulso commltted to mulntulnlng lntegrlty,
ethlcul deullngs, sustulnuble development und greuter soclul responslblllty ln u multl stukeholder
context. Euvlng produced superlor returns for our shureholders und experlenced slgnlflcunt growth,
the Croup's lmmedlute phuses of growth ure fuelled by our vlslon '8ulldlng buslnesses thut ure
leuders ln the reglon'.
Our values
ve ure pusslonute ubout
Chunglng constuntly, relnventlng und evolvlng
Strlvlng to get thlngs rlght the flrst tlme
Lolng the rlght thlngs ulwuys
Constuntly rulslng the bur
losterlng u greut pluce to work
8ulldlng strong relutlonshlps bused on openness und
trust
1kB is
1he lurgest cupltullsed compuny llsted on the
Colombo Stock Lxchunge
1he flrst Srl Lunkun compuny to be llsted overseus
Clobul deposltory recelpts llsted on the Luxembourg
Stock Lxchunge
AAA (lku) credlt ruted by lltch Rutlngs Lunku Ltd
A full member of the vorld Lconomlc lorum
A member of the UN Clobul Compuct
'ohn leells Eoldlngs PLC ~ Annuul Report zccjc
6
April zoo
At the concluslon of the mundutory offer for the purchuse of
shures of Unlon Assurunce PLC, 'lE's effectlve stuke
lncreused to 8c.6 per cent.
'lE wus lncluded ln u new stock murket lndex for the South
Aslun reglon known us SAlL cc whlch wus jolntly luunched by
Low 'ones und the South Aslun lederutlon of Lxchunges
(SAlL). 1he lndex meusures the performunce of the =c lurgest
lndlun stocks und the =c lurgest stocks trudlng ln 8ungludesh,
Muurltlus, Puklstun und Srl Lunku.
May zoo
1he 'ohn leells Croup releused lts flrst stundulone
Sustulnublllty Report for zcc8jc, verlfled by Let Norske
verltus AS, whlch ls ln udherence to the Clobul Reportlng
lnltlutlve (CRlC-) frumework.
August zoo
'lE wus runked flrst by the 8uslness 1oduy muguzlne's
'1op c' Corporute uwurds for zcc,jc8.
September zoo
lorbes Aslu muguzlne lncluded 'lE ln lts lutest llstlng of the
best zcc Aslu Puclflc compunles eurnlng revenues under u
bllllon dollurs u yeur. 'lE wus the only Srl Lunkun compuny to
be feutured ln thls llst.
1runs Aslu Eotel wus rebrunded und reluunched us Clnnumon
Lukeslde Colombo ufter undergolng u Rs. ooo mllllon
refurblshment.
November zoo
8eruwelu Eollduy Resorts (Pvt) Ltd, u fully owned subsldlury of
lnternutlonul 1ourlsts & Eotellers Ltd (l1E), purchused u o.6
ucre block of lund udjolnlng the exlstlng property of l1E ln
8eruwelu.
1he zcc8jc Sustulnublllty Report of 'lE won the gold for
Corporute Soclul Responslblllty reportlng ut the Annuul Report
uwurds orgunlsed by the lnstltute of Churtered Accountunts of
Srl Lunku.
December zoo
'lE, through 'ohn leells Cupltul, purchused u zo.6 per cent
stuke ln Centrul Eospltul (Prlvute) Llmlted for un lnvestment of
Rs. cc mllllon.
1anuary zoo
1rlnco Eollduy Resorts (Pvt) Ltd, u fully owned subsldlury of
'ohn leells Eotels PLC, commenced the refurblshment of Club
Oceunlc Eotel ln 1rlncomulee, to be luunched ln Muy zcc us
the flrst resort of four stur quullty on the eust coust of
Srl Lunku.
Iebruary zoo
'lE wus pluced jolnt runner up ln the lurge compuny cutegory
ut the ACCA uwurds for Sustulnublllty Reportlng zcc.
March zoo
1he murket cupltullsutlon exceeded USL bllllon.
'lE ucqulred 8.o mllllon ordlnury shures of Nutlons 1rust 8unk
through the converslon of wurrunts wlth un lnvestment of
Rs. z=.6 mllllon, thereby mulntulnlng lts percentuge stuke ln
the bunk.
'lE lnvested Rs. .= bllllon ln the 'ohn leells Eotels PLC
(lEL) :- rlghts lssue whllst dlvestlng =c mllllon of lts rlghts.
At the concluslon of the rlghts lssue, 'lE owns 8z. per cent
of lEL wlth the effectlve stukes ln compunles held by lEL ulso
belng revlsed uccordlngly. 1he proceeds recleved by lEL
umountlng to Rs. -.6o bllllon ure eurmurked to fund the
expunslon of the resort hotel sector.
South Aslu Cutewuy 1ermlnuls hundled u record 8z,ccc 1LUs
durlng the month whlch ls the hlghest ever hundled ln u month
ut the termlnul.
OPLRA1INC BICBLICB1S AND
SICNIIICAN1 LvLN1S
lndlcutor () Coal Achievement
(us ut - Murch)
zoo zoo zoo8
L8l1 growth >zc (.o) (z.6) -o.c
LPS growth (fully dlluted) >zc .< (=.=) -z.z
Cush LPS growth (fully dlluted) >zc <|.6 (,.z) z6.
Return on cupltul employed (ROCL) 8 o.8 z.c -.
Return on equlty zc o. c.6 z.=
Net debt (cush) to equlty =c (z.<) . .
IINANCIAL ACBILvLMLN1S & COALS
,
Yeur ended - Murch zoo zoo Change zoo8
Croup revenue Rs. mllllon a;,8o o,cz- , o,8c=
Croup revenue lncludlng ussoclutes Rs. mllllon <;,86 =z,z6 =,oz8
Croup proflt before lnterest und tux Rs. mllllon ;,o8 ,,86 () 8,,
Croup proflt before tux Rs. mllllon 6,<|8 6,z o 6,=,
Croup proflt ufter tux Rs. mllllon <,<<z o,6= z =,=z=
Croup proflt uttrlbutuble to shureholders Rs. mllllon <,zo o,,-z c =,
Llvldends * Rs. mllllon ,8aa ,88- (z) -,,6
Llluted eurnlngs per shure Rs. 8.|8 ,.=z ,.6
Cush eurnlngs per shure Rs. z.oa ,.8o =o .o,
lnterest cover No. of tlmes <.8 o., z- =.
Return on equlty (ROL) o. c.6 z z.=
Pretux return on cupltul employed (ROCL) o.8 z.c (c) -.
8alance sheet highlights and ratios
1otul ussets Rs. mllllon 8,6<8 z,oc , ,c,=c
1otul debt Rs. mllllon ;,a<| z,=, () z,66,
Net debt (cush) ** Rs. mllllon (,|;) o,,- (z8) ==-
1otul shureholders' funds Rs. mllllon a,8|z o=,=c6 c o-,-,
No. of shures ln lssue mllllons 6 6 6-6
Net ussets per shure Rs. 8o.a ,o.o 8 68.z
Lebt j equlty |.o oz.8 (z8) z6.-
Net debt (cush) j equlty ** (z.<) . (z=) .
Lebt j totul ussets ;.; z-.o (z=) ,.
Marketjshareholder information
Murket prlce of shure us ut - Murch (uctuul) Rs. 8a.oo 6z.,= - .,=
Murket prlce of shure us ut - Murch (dlluted) Rs. 8a.oo 6z.,= - 8.,,
Murket cupltullsutlon Rs. mllllon |,8| -8,-6z , ,6,6c
Lnterprlse vulue ** Rs. mllllon z,6oa o-,--6 6c ,6,,-
1otul shureholder return 8.o (oo.,) (=o-) (.c)
Prlce eurnlngs rutlo (PLR) (dlluted) No. of tlmes z. 8.- 6- o.
Llvldend puyout |8.< oz.c (8) 8.c
Llvldend per shure Rs. |.o -.c c =.c
Llvldend yleld .6 o., (6=) o.8
Other
Lconomlc vulue generuted Rs. mllllon <<,6;8 o8,zzc = o6,-
Lconomlc vulue dlstrlbuted Rs. mllllon <o,oaz o-,-,6 = o-,-,c
Lmployees Rs. mllllon 6,|8 =,=oo =,cc=
Covernment Rs. mllllon z,| z,,8 = z,o=-
Others Rs. mllllon ao, -=,c= , -=,z
Lconomlc vulue retulned Rs. mllllon <,6|6 o,8oo 6 -,=o-
1otul employees (excludlng ussoclutes) Number o,88< c,=c o ,z
* casn dvdends pad durng tne year
** customer advances n tne lroperty evelopment sector and unon Assurance lje jund nvestments nave been excluded
IINANCIAL BICBLICB1S
YLAR A1 A CLANCL
8
Although our
overull flnunclul
results ln zccjc exceeded
our prevlous yeur's results und well
exceeded our orlglnul expectutlons, whut wus
most pleuslng wus thut our proflt ufter tux ln the thlrd und the
fourth quurters of zccjc grew ugulnst the correspondlng
quurters of zcc8jc by =, per cent und -= per cent
respectlvely. 1hls posltlve momentum, when vlewed together
wlth the polltlcul, economlc und buslness stublllty whlch huve
been uttulned followlng the cleur und overwhelmlng electorul
mundute recelved by Els Lxcellency the Presldent und hls
Covernment, glves us the confldence to stute thut Srl Lunku ls
on the threshold of unprecedented development und your
Croup ls well posltloned, both ln terms of orgunlsutlonul und
flnunclul cupublllty, to pluy un lmportunt role ln thls nutlonul
journey.
1he key flnunclul hlghllghts for the yeur zccjc, whlch ure
dlscussed ln greuter detull ln the Munugement Llscusslon und
Anulysls sectlon of the report, ure us follows.
Croup revenue lncreused by , per cent to Rs.o,.8 bllllon
Croup proflt before tux (P81) lncreused by o per cent to
Rs. 6.=o bllllon
Croup proflt ufter tux (PA1) uttrlbutuble to equlty holders
lncreused by c per cent to Rs.=.zc bllllon
Cush LPS lncreused by =o per cent to Rs. z.co
1otul shureholder return wus 8 per cent
Net cush flow from operutlng uctlvltles lncreused by -6
per cent to Rs. ., bllllon
Return on equlty wus c. per cent compured to c.6 per
cent ln the prevlous yeur
Although these results, by
themselves, ure sutlsfuctory ln the
context of u turbulent flrst hulf, whlch
wus recoverlng from u globul flnunclul
crlsls, u recesslon und the reslduul lmpucts
of u -c yeur confllct: und u buoyunt second
hulf thut responded posltlvely to the new
envlronment, l belleve thut your Croup hus the
potentlul to slgnlflcuntly exceed the zccjc
performunce ln the lmmedlute future. lts sustulnublllty ln
the medlum to long term, however, cun only be uchleved by
muklng the bold moves whlch defy the ussumptlons thut we
huve clung to ln the pust und by belng more lnnovutlve ln our
thoughts, pluns und uctlons ln cuterlng to u fust puced und
dynumlc economlc und buslness envlronment of the future.
1hls ls u sltuutlon rudlcully dlfferent to the very dlfflcult, und
uncertuln, polltlcul, economlc und buslness cllmutes of the
pust where plunnlng wus u nlghtmure und survlvul wus the
order of the duy. ve huve to thlnk posltlvely und thlnk blg und
our hlghest prlorlty thls yeur ls to meunlngfully relnforce the
'nothlng ls lmposslble' uttltude whlch hus been u hullmurk of
the 'lE culture und to glve greuter lmpetus to the creutlon of
un enubllng envlronment where lnnovutlon ls encouruged.
Clven thut u more detulled unulysls of our lndustry
groupsjsegments ls uvulluble elsewhere ln the Annuul Report,
l wlll restrlct myself to dlscusslng the hlghllghts of zccjc und
u hlghlevel outlook for euch one of them.
1runsportutlon remulned the muln contrlbutor to the Croup's
ufter tux proflts, contrlbutlng o per cent to the Croup's
profltublllty wlth u PA1 of Rs. z.z8 bllllon, un lncreuse of -8 per
cent [zcc8jc: Rs. .66 bllllon|. 1he lndustry group contrlbuted
zc per cent to the Croup's revenue. 1he group's proflts were
mulnly drlven by the operutlons of South Aslu Cutewuy
1ermlnuls (SAC1), ut the Colombo port, where the throughput
grew , per cent yeur on yeur to .88 mllllon 1LUs prlmurlly due
to the slgnlflcunt growth ln demund from key customers. vlth
the untlclputed growth ln lnfrustructure projects und trude
volumes und the ucceleruted development ln the north und
eust, the outlook for the Ports, Shlpplng und Loglstlc
buslnesses ure bulllsh. ln the ulrllnes segment, the expected
growth ln pussenger und curgo volumes wlll more thun
compensute for the lncreuse ln competltlon wlth the udvent of
new ulrllnes operutlng lnto Srl Lunku.
Lelsure recorded u slgnlflcuntly lmproved performunce wlth
tourlst urrlvuls lncreuslng consequent to the end of hostllltles.
Overull, the Lelsure lndustry group contrlbuted zo per cent to
the Croup's revenue und 8 per cent of the Croup's
profltublllty wlth u PA1 of Rs. ,- mllllon, thls belng u
sevenfold lncreuse over zcc8jc [zcc8jc: Rs. z8 mllllon|. ln

untlclputlon of u rejuvenuted Lelsure lndustry ln Srl Lunku, u
totul of over Rs. 6 bllllon hus ulreudy been lnvested undjor
commltted by the Croup. 1he 1runs Aslu Eotel wus refurblshed
und reluunched us Clnnumon Lukeslde ln September zcc: the
Club Oceunlc ln 1rlncomulee wus refurblshed, rebrunded und
luunched us Chuuyu 8lu ln Muy zcc: the south wlng of the
Clnnumon Crund Eotel, comprlslng of z=o rooms, wus
refurblshed und reopened ln Muy zcc: o ucres of lund wus
ucqulred next to the former Eotel 8uyroo glvlng us u
contlguous block of c ucres on the prlme 8eruwulu beuch
front on whlch we wlll construct u c room hotel to operute
under the Chuuyu brund ln zczj-: Clnnumon Lodge, Euburunu
wlll be upgruded und reopened ln 'uly zcc und luunched us u
flve stur property ln November zcc: lnltlul work for the
complete upgrude of Corul Curdens, Elkkuduwu hus begun
und lt wlll be luunched under the Chuuyu brund ln zc. ln the
Muldlves, ull the resorts, wlth the exceptlon of Clnnumon
lslund Alldhoo, performed credltubly desplte u drop ln tourlst
urrlvuls to the country. ve wlll use our purtner networks, und
truck record, to lmprove on the Muldlvlun performunce ln the
current yeur. ln keeplng wlth our goul to provlde
uncompromlsed customer sutlsfuctlon, the Chuuyu Lugoon,
Eukuruu wlll be refurblshed durlng the summer of zcc. As you
ure uwure, 'ohn leells Eotels (lEL) successfully completed u
rlghts lssue of :- ut Rs. c, rulslng upproxlmutely Rs. -.6o
bllllon to purt flnunce the uforesuld expunslons und
refurblshments ln the resort sector. Apurt from the substuntlul
sums ulreudy lnvested und commltted, us detulled ubove, we
ulso plun to expund our Lelsure portfollo by uggresslvely
lnvestlng ln thls sector.
1he Property lndustry group contrlbuted - per cent to the
Croup's revenue und 6 per cent to the Croup's ufter tux
profltublllty wlth Rs. -oz mllllon for the yeur, u -c per cent
decllne [zcc8jc: Rs. o86 mllllon|. Lurlng the yeur ln revlew
the proflts from '1he Monurch', whlch wus u mujor contrlbutor
lust yeur, were ubsent us the project hus now been completed.
1he constructlon of '1he Lmperor' ls contlnulng ulbelt sllghtly
deluyed due to the heuvy securlty urrungements whlch were
prevlously ln pluce. 1here hus been renewed lnterest ln
upurtments ln recent months und we ure currently revlewlng
the pluns thut were shelved when demund wus slugglsh und
ure revlsltlng our strutegy to develop the Croup's substuntlul
lund bunk ln Colombo.
1he Consumer loods & Retull lndustry group contrlbuted
-- per cent to the Croup's revenue und z per cent to the
Croup's ufter tux profltublllty wlth Rs. 88 mllllon, thls
belng u z8 per cent decllne compured to the prevlous
yeur [zcc8jc: Rs. z mllllon|. vhlle the 8everuges
und lrozen Confectlonury buslnesses recorded u PA1
lncreuse of = percent due to lncreused volumes ln
the North und the Lust und the Retull buslness, whlch
suw u slgnlflcuntly lmproved performunce on the
buck of more effectlve buck offlce processes, un
lncreuse ln footfull und lmproved gross murglns ln
splte of u flut uveruge busket vulue, the lndustry group
proflts were negutlvely lmpucted by losses ln the
processed meuts buslness ln lndlu. ve flrmly belleve ln
the potentlul of the lndlun murket for processed meuts us
modern retulllng und the cold chuln expund. vhllst we
uttrlbute the losses purtlully to the leurnlng curve ln lndlu, we
huve revlewed our entlre operutlng model und huve udopted
one thut we thlnk ls better sulted ln uchlevlng our objectlves ln
the medlum term. Looklng forwurd, ln the current yeur, we
wlll expund our runge of lce creum products, rejuvenute und
revltullse our brund und product portfollo. ln the Retull sector
we wlll contlnue to lncreuse our supermurket footprlnt ln key
selected locutlons.
llnunclul Servlces reported u PA1 of Rs. =-c mllllon, un
lncreuse of =6 per cent compured to lust yeur [zcc8jc:
Rs. -- mllllon|. 1he lmpresslve performunce of our stock
broklng urm on the buck of renewed uctlvlty ln the Colombo
Stock Lxchunge, comblned wlth the steudy performunce of
our bunklng ussoclute, Nutlons 1rust 8unk (N18), und our
lnsurunce subsldlury, Unlon Assurunce (UA) contrlbuted per
cent of the Croup's revenue und c per cent of the Croup's
profltublllty. Our focus thls yeur wlll be to dlfferentlute both
N18 und Unlon Assurunce from thelr competltors. As u flrst
step towurds thls, Unlon Assurunce wus rebrunded ln zcc.
lnformutlon 1echnology recorded u PA1 of Rs. 8 mllllon ln the
current yeur compured to the loss of Rs. 6, mllllon ln the
prevlous flnunclul yeur. 1he lndustry group contrlbuted - per
cent to the Croup's revenue und c.- per cent to the Croup's
ufter tux profltublllty. 1he lndlu bused 8PO operutlons becume
profltuble durlng the yeur. 1he Chlcugo bused 8PO operutlons,
ulthough stlll showlng u loss, recorded u slgnlflcuntly lmproved
performunce durlng the yeur und ls well set to uchleve u
posltlve posltlon ln zccj. 1he outlook for the lndlun
operutlons ls posltlve, wlth muny cllent ucqulsltlons ln the
offlng. Other posltlve developments ln the sector lnclude the
lntroductlon of new products, cuterlng to the hotel lndustry
und the ulrllne lndustry by the softwure development buslness
und new product dlstrlbutlon through the offlce uutomutlon
segment. ve expect zccj to be u growth yeur us we muke
efforts to lncreuse our presence ln overseus murkets wlth new
developed solutlons und expund our runge ln the offlce
uutomutlon buslness vlu our relutlonshlps wlth 1oshlbu und
Sumsung.
Pluntutlon Servlces, whlch ls lncluded under 'Other' ln our
segment report, recorded u PA1 of Rs. z,= mllllon whlch ls u =
''...our highest priority
this year is to meaningfully
reinforce the 'nothing is impossible'
attitude which has been a hallmark
of the 1kB culture and to give
greater impetus to the creation of
an enabling environment where
innovation is encouraged''
c
per cent contrlbutlon to the Croup's profltublllty. 1he PA1
lncreuse of =6 percent [zcc8jc: Rs. ,, mllllon| wus mulnly u
result of hlgher teu und rubber prlces ln the lnternutlonul
murkets und lncreused efflclency und effectlveness of our
lnternul processes.
1he results ln thls segment ulso lnclude the cupltul proflt
urlslng from the sule of the lEL rlghts. ve ulso ucqulred u
stuke of zo.6 per cent ln Centrul Eospltul (Prlvute) Llmlted
through 'ohn leells Cupltul. Overull, the 'Other' segment
contrlbuted 6 per cent to Croup revenue und zo per cent to
the Croup's profltublllty.
As hus been stuted tlme und uguln ln my prevlous messuges,
our performunce durlng the yeur und our uchlevements ln the
pust would not huve come ubout lf not for the efforts of the
women und men of 'lE, our most vulued usset. 1o ull of them,
we suy 1hunk You. Some of the tough steps, we took ln the
pust, purtlculurly ln ullgnlng our remunerutlon und rewurds to
stukeholder lnterests, now muke u lot of sense und lt ls those
declslve uctlons, of yesterduy, whlch stund us ln good steud,
toduy, ut u tlme when we fuce un excltlng future. ve ulso
uttuch greut lmportunce to the contlnuous revlew of our
operutlng, flnunclul und uccountlng processes und our
lnformutlon technology systems. Leclslons on l1 lnvestments
ure prlmurlly user drlven und ure mude from u perspectlve of
'must huve' us opposed to 'nlce to huve'. 1he Power of People
und Processes und the Corporute Covernunce sectlons of thls
report descrlbe ln greuter detull the 'wuy we do thlngs ut 'lE'
und evldence the lnvlslble vulue of these soft ussets. l huve no
doubt thut we huve the orgunlsutlonul cupublllty to dellver
well beyond unythlng seen ln the pust. vhllst on the subject of
processes, l um pleused to udvlse you thut the Croup ls
reudylng ltself to udoptlng the new und revlsed Srl Lunku
Accountlng Stundurds (SLAS) when lt converges wlth the
lnternutlonul llnunclul Reportlng Stundurds (llRS). 1he
lnstltute of Churtered Accountunts of Srl Lunku hus
unnounced thut they wlll be converglng wlth llRS wlth effect
from the flnunclul yeurs commenclng 'unuury zc. lt ls
lmportunt to note thut, whlle there wlll be u chunge ln the
reportlng formuts, there wlll be no chunge to the wuy we
operute our buslnesses. 1he emphusls wlll, us hus been the
cuse ln the pust, contlnue to be on cush flows.
Our Croup pursues lts buslness gouls under u stukeholder
model of buslness governunce. As per thls model, we huve
tuken speclflc steps, purtlculurly, ln ensurlng the conservutlon
of our nuturul resources und envlronment. 1hese steps huve
been encupsuluted ln our sustulnublllty progrumme whlch wus
luunched lust yeur und hus slnce progressed slgnlflcuntly. Our
sepurute Sustulnublllty Report detulls such progress. l um
extremely pleused to lnform you thut Let Norske verltus AS
(LNv) hus conflrmed thut our Sustulnublllty Report meets the
generul content und quullty requlrements of the Clobul
Reportlng lnltlutlve (CRl) C- und thut lt hus met the
Appllcutlon Level 8 of the CRl requlrements. 1he zccjc
Sustulnublllty Report ls ulso the flrst ln the country to obtuln u
'CRl level check' whlch reufflrms the report's compllunce wlth
the CRl guldellnes. ln the meunwhlle, our corporute soclul
responslblllty work contlnues to flourlsh under the uegls of the
'ohn leells Soclul Responslblllty loundutlon. 1he loundutlon
looks to lmprove the llves of communltles touched by our
buslnesses by musterlng the energles und commltment of the
very people lnvolved ln these buslnesses, wlth purtlculur
emphusls on educutlon, heulth, envlronment, communlty und
llvellhood development, urts und culture und dlsuster rellef. lt
ls very heurtenlng to recognlse thut our Croup employees
huve shown greut enthuslusm ln reudlly volunteerlng ln muny
of these Croup CSR projects. ln the yeur zccjc, our CSR
projects lncluded:
=, ElvjAlds uwureness sesslons where u totul of 6,-=c
people ucross the lslund were educuted
6c8 cuturuct operutlons und donutlon of ,c- reudlng
glusses us purt of the cuturuct project ulmed ut usslstlng
deservlng lndlvlduuls to reguln thelr vlslon
-6c flnul yeur undergruduutes ut '1he flnul step' u project
to develop soft skllls ln gruduutes from the Unlverslty of
Morutuwu, Srl Lunku
1he uwurd of merlt bused und need bused scholurshlps
ulong wlth Lngllsh lunguuge trulnlng to undergruduutes ln
the Unlverslty of Morutuwu's 1runsport und Loglstlcs
degree progrumme
,6z8 students who were reglstered for 'Lngllsh for Llfe' ln
two lntukes coverlng Llstrlcts ln Srl Lunku
1he successful completlon of the Eulmllluwe vllluge
Adoptlon Project ln the North Centrul Provlnce of Srl Lunku
ufter undergolng u =yeur trunsformutlon, whlch
slgnlflcuntly lmproved the quullty of llfe ln the vllluge.
ln closlng, lt ls noteworthy thut Srl Lunku wus one of the few
economles to record u posltlve growth ln zccjc desplte the
resldues of the confllct, the globul flnunclul crlsls und the
recesslon. lor Srl Lunku, the equutlon hus chunged
drumutlcully wlth the end of the wur und double dlglt growth
ls u reul posslblllty lf the rlght enubllng envlronment ls creuted.
ve belleve thut, whllst the government hus u mujor role ln
creutlng such enubllng envlronment, the prlvute sector must
pluy lts purt more prouctlvely.
l would llke to thunk my colleugues on the 8ourd for thelr
guldunce und support.
llnully, on behulf of the 8ourd und everyone ln the 'ohn leells
Croup, l wlsh to thunk ull of you, our stukeholders, for the
support thut you extended to us durlng the pust yeur und l
look to your fulth ln und support for the excltlng pluns thut we
huve for the comlng yeurs.
Susantha Ratnayake
Chulrmun
z Vay zoo
MANACLMLN1
DISCUSSION AND
ANALYSIS
z
Summary of key income statement items
(Rs. mllllon)
Item zoojo zoo8jo Change Change Lxplanatory highlights for YoY changes
Revenue a;,8o o,cz- 6,=, , 1he lmpuct of consolldutlng UA revenues over the
entlre yeur us opposed to one month, coupled wlth
un lncreuse ln UA revenues
lncreuse ln revenues of Lelsure und 'MSL
Lower revenue ut LMS due to lower oll prlces
Shure of ussoclute z,<<6 z,-oc zc6 lncreused shure of proflts from SAC1 und N18
compuny proflts
Other operutlng <,oz -,,-= ,z86 -o Consolldutlon lmpuct of UA us explulned ubove
lncome Culn on dlsposul of lEL rlghts
Offset by reductlon ln lnterest lncome ut the
holdlng compuny
Llstrlbutlon (z,o6;) (,=88) (o,) (-c) Consolldutlon lmpuct of UA
expenses lncreused murketlng und dlstrlbutlon costs ln 'lll
Admlnlstrutlve (;,z8) (6,c=c) (,68) () Consolldutlon lmpuct of UA
expenses Lxpenses ln other lndustry groups broudly ln llne
wlth lust yeur
L8l1 ;,o8 ,,86 (,8) () Slgnlflcunt lncreuse ln Lelsure due to the turnuround
ln Srl Lunkun operutlons und lmprovement ln the
Muldlves
lncreuse ln llnunclul Servlces due to lmproved
performunces of 'lS8, N18 und UA
Offset by reductlon ln lnterest lncome ut the
holdlng compuny
llnunce expenses (,|;o) (,6=) -z= Reductlon ln rupee lnterest rutes und levels of debt
hud u posltlve lmpuct on overull flnunce expenses
ln ull lndustry groups
1ux expense (8<) (,-z,) -oz z6 Lust yeur's tux expenses lnclude the oneoff tux
lmpuct of LMS
Proflt for the perlod <,<<z o,6= =8, z 8etter perfomunce of Croup compunles
Note: LVS Lanka Varne Servces, N18 Natons 1rust 8ank, SAc1 Soutn Asa cateway 1ermnals, L8l1 earnngs bejore nterest and tax, 1VSL 1aykay
Varketng Servces (keells Super), 1k|l 1onn keells |oods lnda, 1kS8 1onn keells Stockbrokers, uA unon Assurance
CONSOLIDA1LD CROUP PLRIORMANCL
-
OvLRvILW
1he performunce of the Croup durlng the yeur under revlew
wus steudy umldst lmproved sentlment und economlc
condltlons on uccount of the end to the three decude long
confllct ln Srl Lunku. 1he performunce of the Croup ls
dlscussed ln detull luter wlthln thls sectlon und ulso under the
lndustry Croup Anulysls sectlon of the Annuul Report. 1he
lmpuct of certuln mucro economlc fuctors uffectlng the Srl
Lunkun economy und the Croup ure dlscussed below und ln
detull under the Srl Lunkun Lconomy ln the Supplementury
lnformutlon sectlon of thls report.
Crowth
1he yeur zcc suw reduced CLP growth of -.= per cent (us
ugulnst 6.c per cent ln the prevlous yeur) on uccount of the
contlnued lmpucts of the globul economlc crlsls, recesslon und
the reslduul effects of the confllct. vhllst the confllct ended
durlng the yeur, the plck up ln growth ln the economy hud u lug
effect us expected, whlch ls evldent wlth hlgher thlrd und
fourth quurter CLP growth.
Inflation and interest rates
1he polnt to polnt lnflutlon us ut Murch zcc wus recorded ut
6.- per cent us ugulnst =.- per cent ln the prevlous yeur. As u
result of muted lnflutlon flgures throughout the lutter portlon
of the yeur, the unnuul uveruge lnflutlon dropped drustlcully to
-.z per cent ln Murch zcc us opposed to 8.6 per cent ln the
prevlous yeur. 1hls drustlc full wus ulded by the reductlon ln
commodlty prlces globully und locully, on uccount of lncreused
supply, coupled wlth fuvouruble buse effects. 1hls enubled the
Centrul 8unk of Srl Lunku to reduce lts pollcy rutes und
wlthdruw the penul rute resultlng ln u drop ln benchmurk rutes
by ulmost ,cc busls polnts durlng the yeur. As u result, the
uveruge welghted prlme lendlng rute (AvPLR) reduced to
c.,o per cent by Murch zcc us ugulnst .6 per cent ln the
prevlous yeur. Slmllurly, the treusury blll und bond rutes us well
us the other benchmurks fell ln llne wlth the pollcy rute cut und
lnflutlon outlook. 1hls hud u posltlve lmpuct on compunles
wlthln the Croup wlth rupee denomlnuted debt. 1he
uvullublllty of credlt due to hlgh excess llquldlty ln the murket
ulso helped certuln compunles to reduce thelr borrowlng cost.
On u globul front, most developed economles led by the US
seem to be on the recovery truck. vhllst the US hus seen u
plck up ln growth, muted lnflutlon und contlnued concerns on
lmprovlng credlt huve led the US lederul Reserve (led) to
mulntuln lts pollcy led lunds rute ut c.z= per cent. As u result,
the benchmurk London lnterbunk offered rute (Ll8OR)
remulned flut throughout the yeur wlth u sllght uptlck towurds
Murch zcc on expectutlons of u globul recovery. 1he led hus
mulntulned lts pollcy stunce thut lnterest rutes ure expected to
be low for u contlnued perlod of tlme. vlth Ll8OR belng flut ut
relutlvely low levels, the cost of US dollur denomlnuted debt of
the Croup, conslstlng prlmurlly of the lnternutlonul llnunce
Corporutlon (llC) loun ut u holdlng compuny level und debt ln
the Muldlves, hus reduced.
Lxchange rate
1he end of the confllct hud u posltlve lmpuct on the outlook
for the Srl Lunkun rupee und the forelgn currency reserve
posltlon of the country. Post the end of the confllct, the
lnternutlonul Monetury lund (lMl) grunted Srl Lunku u
stundby fuclllty for USL z.6 bllllon to be dlsbursed over elght
trunches. 1he confldence emunutlng from the gruntlng of thls
fuclllty us well us the optlmlsm und expectutlons for the
country resulted ln strong cupltul lnflows lnto the country.
At the end of the confllct, the country hud reserves of
upproxlmutely USL .- bllllon wlth the exchunge rute ut ubout
Rs. 8 to the US dollur. 8y 'unuury zcc, the reserves posltlon
hud lmproved to upproxlmutely USL =. bllllon. 1he rupee wus
ut o to the US dollur us ut - Murch zcc. 1hls shurp
uppreclutlon wus ulded by the contlnued lnflow of US dollurs
lnto the country on uccount of lnvestments ln government
securltles, growth ln remlttunces und u posltlve trude surplus
on uccount of shurply reduced lmports. Conslderlng the
forelgn currency denomlnuted lnflows of most lndustry
groups, the uppreclutlon of the rupee does not fuvour the
Croup. Meusures were tuken to counter the uppreclutlon of
the rupee by coverlng untlclputed lnflows through forwurd
contructs, yleldlng posltlve results. 1he uppreclutlon of the US
dollur ugulnst cross currencles such us the 8rltlsh pound und
the euro ulso hud un lmpuct on the destlnutlon munugement
und property development buslnesses, us dlscussed ln the
lndustry Croup Anulysls sectlon of the Annuul Report.
RLvILW zoojo
Revenue
ln the yeur under revlew, Croup revenue lncreused by , per
cent to Rs. o,.8 bllllon [zcc8jc: Rs. o.cz bllllon|. 1hls
lncreuse wus prlmurlly due to the consolldutlon lmpuct of the
revenues of Unlon Assurunce (UA) for the full yeur us opposed
to only one month of revenues ln the lust yeur. 1he revenues
of Lelsure und Consumer loods & Retull ulso lncreused
slgnlflcuntly durlng the yeur. Croup revenue, lncluslve of
ussoclute compuny revenue, lncreused per cent to Rs. =,.
bllllon [zcc8jc: Rs. =z.z, bllllon|. 1he revenue composltlon of
the Croup chunged us seen ln the gruph below wlth reduced
contrlbutlon from 1runsportutlon ut zo per cent. 1he
contrlbutlon of llnunclul Servlces lncreused to 6 per cent us
ugulnst per cent ln the prevlous yeur. vlth u revenue
contrlbutlon of z, per cent, Consumer loods & Retull ls the
lurgest contrlbutor to Croup revenue.
Larnings before interest and tax
Croup eurnlngs before lnterest und tux (L8l1) murglnully fell
to Rs. ,. bllllon us ugulnst Rs. ,. bllllon due to lust yeur's
L8l1 belng lncluslve of the cupltul guln of Rs. .c- bllllon from
the sule of the shures of Assocluted Motorwuys PLC (AMv)
und the negutlve goodwlll on uccount of the UA ucqulsltlon.
1hls wus purtlully compensuted by the guln on the sule of u
portlon of the 'ohn leells Eotels rlghts.
As seen ln the gruph on L8l1 composltlon, 1runsportutlon
contlnues to be the leudlng lndustry group contrlbutor to L8l1
led by the contrlbutlon from the Ports & Shlpplng sector. 1he
Lelsure contrlbutlon to L8l1 lncreused to per cent ln the
current yeur us ugulnst 8 per cent ln the prevlous yeur. lt ls
noteworthy to mentlon the posltlve L8l1 contrlbutlon of
lnformutlon 1echnology us ugulnst u negutlve L8l1
contrlbutlon ln the prevlous yeur, led by steudy performunces
by the Offlce Automutlon sector und lmproved contrlbutlon
from the lndlun bused 8PO operutlons. Consumer loods &
Retull (Cl&R) und Property both recorded lower L8l1
contrlbutlons. Lven though the Retull sector suw un lmproved
L8l1 for the yeur, the L8l1 of Cl&R us u whole wus negutlvely
lmpucted by the slgnlflcunt losses ln processed meuts ln the
lndlun operutlons. vhlle the Consumer loods sector recorded
lncreuses ln lts gross proflts, the udmlnlstrutlve und
dlstrlbutlon costs of the processed meuts buslness ln lndlu wus
u slgnlflcunt druln on L8l1. 1he L8l1 contrlbutlon of Property
reduced due to u reductlon ln other lncome, whlch lncluded
u guln on revuluutlon of lnvestment property ln the
prevlous yeur.
1he reductlon ln lnterest rutes und the reductlon of excess
cush due to lnvestments resulted ln reduced lnterest lncome
ut the holdlng compuny. 1he beneflts uccrulng from these
lnvestments ure expected to offset thls lmpuct, ulbelt wlth u
lug effect.
L8I1 margins
As lllustruted, the L8l1 murgln of the Croup fell to -.6 per cent
us ugulnst =.- per cent ln the prevlous yeur due to the
uforementloned reusons. Lncouruglngly, us seen ln the tuble
on the lndustry group L8l1 murglns, the L8l1 murglns of some
key lndustry groups recorded un lncreuse us ugulnst the
prevlous yeur wlth Lelsure ln purtlculur recordlng u slgnlflcunt
lncreuse.
Industry group L8I1 margins
zoojo zoo8jo zoo;jo8
1runsportutlon 6. =.z 8.6
Lelsure z. 6.= .=
Property za.o --., -o.=
Consumer loods & Retull z.6 -.= =.
llnunclul Servlces .o 8. c.8
lnformutlon 1echnology o.6 (o.-) o.-
Other 8|.6 -., o.=
Overall Croup |.6 =.- =.
Iinance expenses
On the buck of reduclng lnterest rutes ln Srl Lunku, the flnunce
expense of the Croup decllned to Rs. .-, bllllon [zcc8jc:
Rs. .,c bllllon|. Other, whlch lncludes Pluntutlon Servlces,
uccounted for u mujorlty of the flnunce expense of the Croup
prlmurlly due to the holdlng compuny term loun from the llC.
Lelsure wus ulso u slgnlflcunt contrlbutor towurds flnunce
expenses us u result of lts borrowlngs ln the Muldlves. 1he
flnunce expense of Lelsure dld not reduce us slgnlflcuntly us
wlth the rupee borrowlngs, us these louns ure llnked to Ll8OR
rutes where the reductlon wus not us murked us the locul
rutes. 1he lnterest cover of the Croup lncreused to =.8 tlmes us
ugulnst o., tlmes ln the prevlous yeur, on uccount of the
reductlon ln flnunce expenses.
1axation
Croup tux expense fell by Rs. -oz mllllon to Rs. 8= mllllon
[zcc8jc: Rs. .-- bllllon|. 1he effectlve tux rute on Croup
proflts reduced to =. per cent from z. per cent ln the
prevlous yeur. 1hls exceptlonul drop wus due to the
compurutlve for lust yeur lncludlng the tux lmpuct on LMS
urlslng out of the judgment of the Supreme Court of Srl Lunku.
ln uddltlon, the effectlve tux rute beneflted us u result of the
tuxexempt lnterest lncome und cupltul gulns on bond
lnvestments ut the holdlng compuny. Eowever, even ufter the
udjustment for LMS und the holdlng compuny, the effectlve
tux rute of the Croup hus decllned murglnully to 8.= per cent
us ugulnst . per cent ln the prevlous yeur.
lurther detulls on the tux lmpucts und contlngent llubllltles of
the Croup cun be found ln the Notes to the llnunclul
Stutements of the Annuul Report.
Profit after taxation
Croup proflt ufter tuxutlon (PA1) lncreused by z per cent to
Rs. =.== bllllon [zcc8jc: Rs. o.6 bllllon|. All lndustry groups
mude posltlve contrlbutlons to PA1 wlth 1runsportutlon,
Lelsure und llnunclul Servlces belng the prlmury contrlbutors
wlth Rs. z.z8 bllllon, Rs. ,- mllllon und Rs. =-c mllllon
o
CONSOLIDA1LD CROUP PLRIORMANCL
=
respectlvely. 'Other', lncludlng Pluntutlon Servlces, hud u PA1
of Rs. .-z bllllon [zcc8jc: Rs. z.oc bllllon| wlth contrlbutlons
from Pluntutlon Servlces und the holdlng compuny. 1he
holdlng compuny contrlbutlon to PA1 wus prlmurlly on
uccount of lnterest lncome. 1he prevlous yeur's PA1 of the
holdlng compuny lncluded the oneoff cupltul guln on the sule
of AMv und negutlve goodwlll on the ucqulsltlon of UA.
Minority interest
Mlnorlty lnterest (Ml) lncreused to Rs. -= mllllon [zcc8jc:
z-z mllllon| prlmurlly on uccount of the lncreuse ln proflts from
llnunclul Servlces, Clty Eotels und Pluntutlon Servlces.
Eowever, the Ml shure of proflts of Property und Consumer
loods & Retull decllned due to lower proflt contrlbutlons us
dlscussed ln the lndustry group revlews.
Profit attributable to equity holders of the parent
1he proflt uttrlbutuble to equlty holders of the purent
lncreused by c per cent to Rs. =.zc bllllon [zcc8jc: Rs. o.,-
bllllon|. 1he net proflt murgln of the Croup wus .c per cent us
ugulnst . per cent ln the prevlous yeur.
Although the proflt ufter tux for the yeur lncreused by only c
per cent us ugulnst the prevlous yeur, the thlrd und fourth
quurter performunces demonstrute the proflt generutlon
potentlul of the Croup. vhllst the fourth quurter hus
hlstorlcully been u strong quurter, the strength of proflt
growth wltnessed ls nevertheless encouruglng.
As lllustruted ln the tuble below, the posltlve trend ln
performunce ls more evldent ln Lelsure und 1runsportutlon.
(Rs. mllllon) IY zoojo
O Oz O| Oa 1otal
Net turnover c,c6, ,z-o z,,=o -,z= o,,8c
P81 = c= ,=c- -,, 6,=-8
1runsportutlon =z 6z, =c6 ,co z,-66
Lelsure (o,) (z,) --- 8=z ,c
Property -o , 6 zco -,8
Cl&R o =c ,, zc z88
llnunclul Servlces z, 6= -=- -- 868
l1 (-z) (-) o o= o
Other z, zz 6 ,z ,6z
Proflt uttrlbutuble to
equlty holders 6=c =,= ,- z,8-, =,zc
1otul ussets z,6o, -,cc, o,,zc 8,6=8 8,6=8
1otul equlty =c,z=, =c,8, =,,c- =6,z6z =6,z6z
1otul debt z,o= zc,,z ,c88 ,,o=- ,,o=-
Contribution to Sri Lankan economy
1he economlc vulue stutement of the Croup hus been
complled under the Clobul Reportlng lnltlutlve (CRl)
guldellnes. 1he economlc vulue stutement us per the CRl
lndlcutor LC dlrect economlc vulue generuted und
dlstrlbuted, ls uvulluble ln the llnunclul Reports sectlon of the
Annuul Report. 1he dlrect economlc vulue generuted durlng
the yeur wus Rs. ==.68 bllllon [zcc8jc: Rs. o8.zz bllllon|. 1hls
comprlsed prlmurlly of revenue, lnterest lncome, shure of
results of ussoclutes und proflt on sule of ussets. 1he
correspondlng economlc vulue dlstrlbuted wus Rs. =c.co
bllllon [zcc8jc: Rs. o-.-8 bllllon|. 1hls comprlsed of Rs. o-.=-
bllllon us operutlng und employee reluted costs [zcc8jc:
Rs. -6.,= bllllon|, und u further Rs. -.=, bllllon us puyments to
provlders of funds [zcc8jc: Rs. -.8 bllllon|. 1he Croup
contrlbuted u totul of Rs. z. bllllon us puyments to
government [zcc8jc: Rs. z.,8 bllllon|, prlmurlly on uccount of
tuxes. 1he economlc vulue retulned, comprlslng of proflt ufter
dlvldends, depreclutlon und umortlsutlon wus Rs. =.6o bllllon
[zcc8jc: Rs. o.8o bllllon| whlch hus been retulned for
lnvestmentjgrowth.
Return on capital employed and return on equity
1he return on cupltul employed (ROCL) dropped to c.8 per
cent us ugulnst z.c per cent ln the prevlous yeur. Croup cupltul
employed us ut - Murch zcc lncreused murglnully by z per
cent to Rs. ,-., bllllon [zcc8jc: Rs. ,z.c6 bllllon|. Eowever,
the uveruge cupltul employed lncreused by c per cent to
Rs. ,z.8 bllllon [zcc8jc: Rs. 66.o= bllllon|. 1he drop ln ROCL
wus due to flut L8l1, on uccount of reusons dlscussed before,
und un lncreuse ln the uveruge cupltul employed. lurther
detulls on lndustry groupwlse ROCL cun be found ln the
lndustry Croup Anulysls und Portfollo Movement und
Lvuluutlon sectlons of the Annuul Report.
ROCL = L8I1 x Asset x Assetsj
margin turnover (debt+equity)
zoojo o.8 = |.6 x o.6 x .|
zcc8jc z.c = =.- x c.6o x .z-
Return on equlty (ROL) lncreused to c. per cent compured
wlth c.6 per cent ln the prevlous yeur. 1he return on ussets ut
=.8 per cent wus lower thun lust yeur.
ROL = ROA x CLL x CSL
zoojo o. = <.8 x o.a x z.oo
zcc8jc c.6 = 6. x c.= x .8-
CROUP OU1LOOk
1he overull outlook for the Croup ls posltlve wlth the
untlclputed 'peuce dlvldend' due to the end of the confllct ln
Srl Lunku und un expected plck up ln growth. 1he outlook und
future pluns of euch lndustry group ure detulled ln the lndustry
Croup Anulysls sectlon of the report. 1he followlng dlscusslon
focuses on the expected mucro economlc envlronment und
resultunt lmpucts und opportunltles for the Croup us u whole.
lnflutlon ls expected to lncreuse sllghtly ln the current yeur,
purtly due to buse effects und posslble lncreuses ln commodlty
prlces und demund drlven lnflutlon. 1he puce ut whlch the
globul economy recovers wlll dlctute the extent of commodlty
prlce lncreuses. 1hls lmpuct, lf uny, could be purtlully offset by
hlgher locul food productlon. vhllst low lnterest rutes muy
fuel demund drlven lnflutlon, the relutlvely slow plck up ln
prlvute credlt growth lndlcutes u somewhut lugged effect. As
such, whlle lnflutlon ls expected to plck up from current levels,
forecusts lndlcute lnflutlon ut mld to hlgh slngle dlglts towurds
the end of the yeur. As such, lt ls expected thut Centrul 8unk
pollcy rutes und resultunt lnterest rutes wlll not lncreuse
slgnlflcuntly from current levels.
Contlnued forelgn currency lnflows und untlclputed contlnulty
of sume polnt towurds u strong Srl Lunkun rupee. Pollcy
mukers huve lndlcuted thut exporters should prepure
themselves for the posslblllty of un uppreclutlng rupee. lt ls
wldely belleved the rupee would uppreclute from lts current
levels of Rs. -.=co.cc ugulnst the US dollur. Prouctlve
strutegles to munuge the potentlul exposure ure ln pluce und
wlll contlnue to be monltored to ensure the Croup hus
mlnlmum lmpuct. 1he volutlllty of the 8rltlsh pound und the
Luro due to ongolng lssues ln these economles ure cuuses for
concern for some buslnesses, ulthough not consldered
muterlul ut present ln the context of the Croup.
1he recovery of the globul economy ls gulnlng tructlon. 1hls ls
expected to leud to u rlse ln pollcy rutes ln the US, leudlng to
lnterest rute lncreuses ut some polnt. 1hls wlll huve un lmpuct
on some of the US dollur denomlnuted borrowlngs of the
Croup, ulthough rutes ure stlll consldered qulte fuvouruble ut
present. lt ls not expected thut rute lncreuses would be
slgnlflcunt ln the ensulng yeur.
1he Srl Lunkun economy ls forecust to grow between 6, per
cent ln zcc, wlth the Centrul 8unk growth forecust ut 6.= per
cent. 1he end to the confllct und the openlng up of the
prevlously lnuccesslble North und Lust of the country ls
expected to spur growth. Contlnued lncreuses ln ugrlculturul
und flsherles productlon should result ln growth ln the
ugrlculturul sector of the economy. 1he resultunt beneflts ln
terms of dlsposuble lncomes wlll ulso huve u posltlve lmpuct
on consumptlon. 1he concluslon of both the Presldentlul und
Purllumentury electlons hus resulted ln u stuble government,
thut ls now ln u posltlon to lmplement necessury reforms und
lnfrustructure development. 1he beneflts of untlclputed
growth ln CLP to the buslnesses of the Croup ure outllned ln
the lndustry group revlews. 1he key opportunlty for the Croup
wlll be lts ublllty to tuke udvuntuge of lts bulunce sheet
strength ln belng lnvolved ln lurge cupltul lntenslve projects
und publlcprlvute purtnershlps. 1he Croup ls now reudy to
''set the puce'' ln leudlng growth ln thls new envlronment.
6
,
CROUP IINANCIAL POSI1ION, LIOUIDI1Y AND
CAPI1AL RLSOURCLS
Summary of key balance sheet items
(Rs. mllllon)
Item zoojo zoo8jo Change Change Lxplanatory highlights for YoY changes
Non current assets
Property, plunt und z,8 z,6= zo c Muln lncreuse of Rs. ,=- mllllon ln PPL of Clty Eotels
equlpment und Rs. z-8 mllllon ln ucqulrlng lund ln 8eruwulu
Above offset by depreclutlon churge of Rs. .,o bllllon
lnvestments ln a,|o z,8c ,-z c lnvestment of Rs. cc mllllon by 'lE ln CEL und
ussoclutes Rs. -,6 mllllon ln convertlng N18 wurrunts to shures
Current assets
lnventorles z,z< z,z=o o z lncreuse ln 'MSL on uccount of hlgher revenues
Offset by reductlon ln Property und CCS
1rude und other ,|a ,cz8 c6 c lncreuse ln Lelsure prlmurlly on the buck of enhunced
recelvubles revenues of vulkers 1ours und Clnnumon Crund
Short term zz,|a ,,occ o,o z8 lncreuse ln Lelsure due to lnflows from rlghts lssue
lnvestments und Purtlully offset by u reductlon ln 'lE due to lnfuslon
cush ln hund to lEL rlghts und CEL lnvestment
lncreuse ln lnvestments of UA
Shareholders' funds a,8|z o=,=c6 o,-z6 c Proflt uttrlbutuble to compuny of Rs. =.zc bllllon,
offset by dlvldend of Rs. .8o bllllon
Non current liabilities
lnsurunce provlslon z,a6 ,cz6 ,zc , lnsurunce obllgutlons pertulnlng prlmurlly to llfe fund
of UA. lncreuse due to lnterest lncome on llfe fund
und uddltlon of pollcy holders
lnterest beurlng o,<| o,,- (o,zcc) (z8) Reductlon due to Rs. z.cc bllllon debenture of
borrowlngs 'lE fulllng due wlthln yeur
Movement of cupltul repuyment commltments for
the yeur on llC, Muldlvlun und other debt lnto current
llubllltles
Current liabilities
1rude und other 8,86; 6,=c= z,-6z -6 lncreuse ln Lelsure und Cl&R due to hlgher
puyubles operutlng volumes
Current portlon of a,6 ,88 z,-= z Movement of Rs. z.cc bllllon debenture ut 'lE due
lnterest beurlng ln October zcc
borrowlngs Addltlon of cupltul repuyment us mentloned ubove
8unk overdruft z,<;6 o,-c (z,-=o) (o8) Reductlon ln holdlng compuny overdruft used to
fund lnvestments lust yeur
Lrop ln Lelsure due to converslon of overdruft ln
Muldlves to term loun
Note: llL lroperty plant and equpment, N18 Natons 1rust 8ank, 1VSL 1aykay Varketng Servces (keells Super), uA unon Assurance,
ccS ceylon cold Stores, 1kn 1onn keells noldngs, l|c lnternatonal |nance corporaton, c| consumer |oods and etal, cnL central nosptal,
knL 1onn keells notels
8ALANCL SBLL1 S1RUC1URL
1otul ussets lncreused by Rs. 6.=z bllllon to Rs. 8.66 bllllon
[zcc8jc: Rs. z.o bllllon| wlth lncreuses seen prlmurlly ln
cush und short term lnvestments, und lnvestments ln
ussoclutes.
Non current assets
Non current ussets of the Croup lncreused murglnully by per
cent to Rs. 6o.c bllllon [zcc8jc: Rs. 6-.oz bllllon|. lncreuses
were prlmurlly seen ln lnvestments ln ussoclutes us u result of
the lnvestment ln Centrul Eospltul (Prlvute) Llmlted (CEL) und
the Croup tuklng up lts shure of wurrunts ln Nutlons 1rust
8unk, both lnvestments umountlng to u totul of Rs. .-8 bllllon.
Property, plunt und equlpment (PPL) wus flut ut Rs. z.
bllllon [zcc8jc: Rs. z., bllllon|. 1he uddltlon to PPL durlng
the yeur wus Rs. .,8 bllllon. Prlmury lncreuses were seen ln
Lelsure on uccount of the refurblshment of the former 1runs
Aslu Eotel, Clnnumon Crund, the former Club Oceunlc Eotel
und the purchuse of lund ln 8eruwulu. 1hese uddltlons were
offset by the depreclutlon churge of Rs. .,o bllllon durlng the
yeur.
Working capital
Net worklng cupltul of the Croup lncreused by Rs. z.88 bllllon
to Rs. ,.,z bllllon [zcc8jc: Rs. o.8o bllllon| on uccount of un
lncreuse of Rs. o. bllllon ln short term lnvestments und cush,
purtlully offset by un lncreuse of Rs. z.-6 bllllon ln the trude
und other puyubles of the Croup. Short term lnvestments und
cush lncreuses were prlmurlly seen ln the Lelsure und llnunclul
Servlces lndustry groups. 1rude und other puyubles lncreused
on uccount of un lncreuse ln hotel und destlnutlon
munugement compunles und the Retull sector on uccount of
hlgher volumes, us well us ln Property. ln compurlson, trude
und other recelvubles lncreused by only Rs. c6 mllllon
prlmurlly due to lncreuses ln Lelsure.
Activity and liquidity
zoojo zoo8jo
Current rutlo z. z.
Oulck rutlo . .
Net worklng cupltul (Rs. Mn) ;,;; o,8o=
Asset turnover o.6 c.6
Cupltul employed (Rs. Mn) ;|,;< ,z,c6o
1otul debt (Rs. Mn) ;,a<| z,=,
Net debt (cush) (Rs. Mn) (,|;) o,,-
Lebtjequlty rutlo () |.o oz.8
Net debt (cush)jequlty rutlo () (z.<) .
Longterm debt to totul debt () 6o.< 68.-
Lebtjtotul ussets () ;.; z-.o
CASB ILOW
Cush und cush equlvulents lncreused by Rs. ,.c6 bllllon to Rs.
.=6 bllllon [zcc8jc: Rs. z.=c bllllon|. Net cush flow from
operutlng uctlvltles lncreused to Rs. ., bllllon us ugulnst Rs.
o.= bllllon ln the prevlous yeur. Net cush used ln lnvestlng
uctlvltles wus Rs. z.c bllllon on uccount of purchuse of PPL us
outllned before und the lnvestment ln CEL. Net cush flow used
ln flnunce uctlvltles wus Rs. 6-6 mllllon on repuyment of debt
und dlvldends, offset by the proceeds from mlnorlty
shureholders emunutlng from the rlghts lssue of 'ohn leells
Eotels PLC.
LLvLRACL AND CAPI1AL S1RUC1URL
Capital structure
1otul ussets of Rs. 8.66 bllllon were funded by shureholders'
funds (= per cent), mlnorlty lnterest (6 per cent), long term
credltors (z6 per cent) und short term credltors (, per cent).
Long term fundlng of ussets wus Rs. 8.8 bllllon, umountlng to
8- per cent of totul ussets.
Debt
1he totul debt of the Croup decllned by Rs. o.= bllllon to
Rs. ,.o= bllllon [zcc8jc: Rs. z.6c bllllon|. 1he Croup wus ln u
net cush posltlon of Rs. .-8 bllllon due to the reductlon ln debt
coupled wlth un lncreuse ln short term lnvestments und cush.
1he debt to equlty rutlo of the Croup wus -.c per cent us
compured to oz.8 per cent ln the prevlous yeur. 1otul term
debt of the Croup decllned by Rs. o.zc bllllon from Rs. o.,o
bllllon. 1he reductlon ln term debt wus prlmurlly due to cupltul
repuyments on the llC loun ut u holdlng compuny level
umountlng to Rs. ., bllllon, us well us movement of cupltul
repuyment commltments to current llubllltles. Addltlonully,
reductlons ln term debt ln Consumer loods & Retull und Clty
Eotels ulso contrlbuted to thls decreuse. Although there were
repuyments of term debt ln the Muldlves, converslon of un
exlstlng overdruft fuclllty lnto term debt resulted ln overull
term debt belng ut slmllur levels. Lesplte the reductlon ln
lnterest rutes, the Croup reduced lts debt levels ln llne wlth
repuyments glven the negutlve lncome stutement lmpuct ln
huvlng excess cush. 1he holdlng compuny und Lelsure uccount
for u mujorlty of the totul debt wlthln the Croup.
S1A1LMLN1 OI CBANCLS IN LOUI1Y
1otul shureholders' funds lncreused to Rs. o.8- bllllon
[zcc8jc: Rs. o=.= bllllon| prlmurlly on uccount of un lncreuse
ln revenue reserves drlven by proflt uttrlbutuble to equlty
holders of the purent of Rs. =.zc bllllon less dlvldends puld
umountlng to Rs. .8o bllllon.
1RLASURY MANACLMLN1
1he drustlc reductlons ln lnterest rutes und the reversul of the
rupee exchunge rute, whlch sturted to uppreclute, requlred u
constunt revlew of tuctlcs ln munuglng the treusury uctlvltles
of the Croup. Reductlons ln benchmurk rutes ullowed certuln
compunles to reduce thelr long term borrowlng component
und to opt for short term, cheuper fundlng. Slmllurly, on the
exchunge rute munugement front, the Croup wus consclous of
the lmpucts of un uppreclutlng rupee on buslnesses wlth
forelgn currency lncome streums und took necessury uctlons
where exposures were ldentlfled. lmport reluted buslnesses
beneflted from the sllght uppreclutlon of the rupee.
1he lnvestment pollcles of the Croup contlnue us before
wlthln the guldellnes set out by the Croup Lxecutlve
Commlttee (CLC). lnvestments ure pluced wlth flnunclul
lnstltutlons meetlng u mlnlmum rutlng crlterlon us ugreed wlth
the CLC. Long term lnvestments ure done ln full consultutlon
wlth CLC to ensure uvullublllty of udequute fundlng to meet
lnvestments ln the project plpellne.
Credit facilities
'lE ls ruted AAA (lku) by lltch Rutlngs Lunku Ltd on uccount of
lts strong bulunce sheet und steudy performunce. ln uddltlon
to lts slzeuble cush reserves, the Croup contlnues to huve
slgnlflcunt credlt fucllltles uvulluble wlth bunks ln
Srl Lunku. 1he uvullublllty of cush reserves hus not necessltuted
utlllsutlon of u mujorlty of the fundlng llnes uvulluble,
purtlculurly ut u holdlng compuny level. 1he current net cush
posltlon of the Croup demonstrutes lts ublllty to leveruge lts
bulunce sheet further lf the requlrement urlses. 1he cush
reserves of Rs. zz.- bllllon, coupled wlth credlt fucllltles of
upproxlmutely Rs. - bllllon ure deemed to be sufflclent to
fund the short to medlum term opportunltles uvulluble to
the Croup.
8
INDUS1RY CROUP ANALYSIS

INDUS1RY CROUP IINANCIAL BICBLICB1S
1urnover * s. bllon
zcc o.8 .=c .6z =.8o .o- z.= z.8z
zcc =.o- .66 .=8 o.- =.8 z.,- z.,=
zcc8 6., ., z.6z .-8 -.z z.zo o.,,
L8I1 s. bllon
Capital employed s. bllon
1otal assets s. bllon
Lmployees Number
1
R
P
L
L
I
S
U
R
L
P
R
O
P
C
I
&
R
I
I
N

S
L
R
I
1
O
1
B
L
R
zcc z.- .o c.- c.oz c.8= c.cz z.-6
zcc z.-o c.6z c.=- c.o c.o (c.z) -.6-
zcc8 -.c .z c.c c.=, c.oz c.c .8
1
R
P
L
L
I
S
U
R
L
P
R
O
P
C
I
&
R
I
I
N

S
L
R
I
1
O
1
B
L
R
zcc -.8c z.=, 6.- o.cc 6.oc .- z.o-
zcc -.z z=.,8 =.o= o.o6 =.=, .o, =.oz
zcc8 c.6= z=.-z o.8= o.z, z.cc .,8 .,
1
R
P
L
L
I
S
U
R
L
P
R
O
P
C
I
&
R
I
I
N

S
L
R
I
1
O
1
B
L
R
zcc o.8- -z.=o 6. ,.cz z.o6 .,o o.c8
zcc o.8 z8.oc =.,- ,.c6 ,.88 .8c 6.o,
zcc8 -.cz z8.c, =.oc 6.=6 z.== z.c -.z=
1
R
P
L
L
I
S
U
R
L
P
R
O
P
C
I
&
R
I
I
N

S
L
R
I
1
O
1
B
L
R
zcc =o- o,- co z,8,8 6 88 ,zz,
zcc 6o- -,86 zc -,c6 zo 6-8 ,,o
zcc8 ,zc o,=o 8 z,86 zo ,cc ,-8c
1
R
P
L
L
I
S
U
R
L
P
R
O
P
C
I
&
R
I
I
N

S
L
R
I
1
O
1
B
L
R
* 1urnover s nclusve oj tne croup's snare oj assocate company turnover
vlth u vlslon to be recognlsed us u leudlng provlder of trunsportutlon solutlons und reluted
servlces through u bulunced portfollo of buslnesses ln selected murkets, the
1runsportutlon lndustry group operutes under the followlng two struteglc sectors
Ports und Shlpplng
1runsportutlon
Loglstlcs
Alrllnes
1hese operutlons offer u complete urruy of trunsportutlon reluted servlces ln Srl Lunku und
the reglon. 8uslnesses ln the lndustry group lnclude operutlons of South Aslu Cutewuy
1ermlnuls ln the Port of Colombo, u murlne bunkerlng buslness, jolnt venturesjussoclutlons
wlth leudlng trunsportutlon multlnutlonuls, loglstlcs, truvel und ulrllne servlces ln Srl Lunku,
lndlu und Muldlves.
z
Review
1he outset of the yeur under revlew suw the trunsportutlon
lndustry ulso uffected by the lmpucts of the globul flnunclul
crlsls whlch constrlcted globul trude.
Lesplte these negutlve condltlons, the 1runsportutlon
lndustry group performed well wlth lmprovements ln the
performunce of the Ports & Shlpplng sector und Loglstlcs
segments.
Led by the port operutlons of South Aslu Cutewuy 1ermlnuls
(SAC1), the Ports & Shlpplng sector hud u commenduble yeur.
vhllst lndustry group revenues were down conslderubly due
to lower oll prlces resultlng ln reduced revenues ut Lunku
Murlne Servlces (LMS), overull profltublllty lmproved on the
buck of u return to profltublllty of LMS und un excellent
performunce by SAC1. Lesplte u slow down ln globul trude
und lmports to Srl Lunku, hlgh trunsshlpment volumes us u
result of lncreused trude volumes to und from lndlu resulted ln
un overull growth of - per cent ln the 1LUs hundled ut the Port
of Colombo. SAC1 hud lts flrst full yeur of operutlons wlth c
shlptoshore crunes whlch greutly fucllltuted the efflclent
hundllng of the lncreused throughput. SAC1 hundled un ull
tlme record 8z,ccc 1LUs ln the month of Murch zcc. 1he
repututlon of LMS us u quullty suppller of bunker fuel und thelr
hlgh servlce stundurds suw them retuln murket leudershlp,
ulbelt ut lower murglns due to unsustulnuble prlclng pollcles
udopted by new entrunts, ut tlmes selllng below cost. 1hls
resulted ln some new suppllers exltlng the buslness.
1he Loglstlcs segment wltnessed un lmprovement compured
to the prevlous yeur prlmurlly due to the lmproved
performunce of 'ohn leells Loglstlcs' operutlons ln Srl Lunku
coupled wlth u steudy contrlbutlon from the ulr express
buslness of LEL leells.
Lurlng the yeur, the ''ohn leells Loglstlcs' brund wus
luunched ln Srl Lunku und lndlu for lts globul forwurdlng und
globul supply chuln solutlons buslnesses. 1he frelght
forwurdlngjloglstlcs buslness ln lndlu contlnued to muke
losses, ulthough ut u lower level thun ln the prevlous yeur. A
murketlng strutegy hus been developed together wlth the
estubllshment of the 'ohn leells Loglstlcs brund to lmprove
performunce over the medlum term. Severul supply chuln
solutlons ure belng evuluuted ut present for projects ln lndlu
und Srl Lunku.
1he frelght forwurdlng buslnesses ln generul suffered us u
result of u slgnlflcunt full ln frelght rutes due to over cupuclty
urlslng from the slow down ln globul trude.
1he Alrllnes segment performunce fell ugulnst the prevlous
yeur due to reduced truvel durlng the yeur. 1he sector
consollduted the operutlons of vulkers Alr Servlces und Muck
Alr Ltd (MAL) through un umulgumutlon, wlth MAL us the
survlvlng entlty wlth u vlew to hurnesslng the synergles of
both unlts und reduclng costs. Lurlng the yeur under revlew,
'lE ucqulred the -c per cent stuke held by Amerlcun Lxpress
ln Mucklnnons Amerlcun Lxpress 1ruvel, thus muklng lt u
wholly owned subsldlury. Notwlthstundlng the ucqulsltlon,
Mucklnnons Amerlcun Lxpress 1ruvel contlnues us the sole
Amerlcun Lxpress buslness truvel purtner ln Srl Lunku.
Iinancial review
Revenue
Revenue, lncludlng ussoclute compuny revenues fell 8 per
cent to Rs. o.8 bllllon [zcc8jc: Rs. =.oo bllllon|.
1he drop ln revenue ls due to the reduced revenues of LMS
due mulnly to lower oll prlces.
Croup shure of ussoclute compuny revenue lncreused on
uccount of lncreused revenues ut SAC1.
Revenues of the Loglstlcs segment were relutlvely flut due
to murglnul growth of revenues of LEL leells, whlch ls the
lurgest contrlbutor to thls segment.
** |or assocate companes tne captal employed s representatve oj tne croup's equty
nvestment n tnese companes
*** L8l1 per employee s calculated excludng tne employees oj assocate companes
(Rs. mllllon) zoojo zoo8jo Chg zoo;jo8
1urnover* a,;; =,o-= (8.) 6,,c6
L8l1 z,| z,-oc z.z -,cz
P81 z,|66 z,z8, -.o -,c==
PA1 z,z8z ,6=8 -,., z,co
1otul ussets a,8| o,8c6 c.z -,c8
1otul equlty |,a8 -,6c= (c.8) c,-,,
1otul debt z8 -, (6.) z,z
Cupltul employed** |,;6 -,zz (c.) c,6o
Cupltul expendlture <| c- (o8.-) zoo
No. of employees <a| 6o- (=.6) ,zc
L8l1 per employee*** a.a -.6 z.c o.-
zz
L8I1
lncreused by Rs. = mllllon to Rs. z.- bllllon [Rs. z.-o
bllllon|.
Strong contrlbutlon to L8l1 from the Ports & Shlpplng
sector on uccount of the performunce of SAC1.
ln the 1runsportutlon sector, reduced revenues und
murglns due to the lntense competltlon, us dlscussed
before, lmpucted the L8l1 contrlbutlon of LMS.
1he Loglstlcs segment whlch ls wlthln the 1runsportutlon
sector, recorded u posltlve L8l1 us ugulnst u negutlve
contrlbutlon ln the lust yeur drlven by lmproved L8l1 ln the
operutlons of 'ohn leells Loglstlcs.
Return on capital employed
ROCL of ,.- per cent us ugulnst . per cent ln the
prevlous yeur.
L8l1 murglns lmproved to 6. per cent us ugulnst =.z per
cent ln the prevlous yeur.
Asset turnover reduced to c.6 us ugulnst . ln the
prevlous yeur due to the drop ln revenues of LMS.
Cupltul employed ln zccjc fell murglnully to Rs. -.8c
bllllon from Rs. -.z bllllon. Eowever, uveruge cupltul
employed lncreused to Rs. -.86 bllllon from Rs. z.z
bllllon ln the prevlous yeur.
Iuture plans and outlook
1he outlook for the 1runsportutlon lndustry group ls bulllsh
conslderlng the untlclputed lncreuse ln trude und loglstlcs
volumes ln Srl Lunku. 1runsportutlon ls reudy to ''set the puce''
wlth the Ports & Shlpplng sector und Loglstlcs segment ln
purtlculur geured for thls chullenge. 1he untlclputed growth ln
lnfrustructure projects und trude volumes ls expected to drlve
volumes ln the Port of Colombo. Lurlng the ensulng yeur,
SAC1 pluns on further enhunclng lts operutlonul efflclencles
through the replucement of two shlptoshore crunes. 1he
development of the Colombo South Port und lncreused trude
volumes should drlve the number of vessels culllng ut the Port
of Colombo. 1hls ls ulso llkely to huve u correspondlng posltlve
lmpuct on the bunkerlng buslness of the group.
As ln the cuse of port operutlons, the lncreuse ln trude und
lnfrustructure reluted uctlvltles wlll beneflt the loglstlcs
buslness of the group. 1he openlng up of the North und Lust
of Srl Lunku ulso presents slgnlflcunt opportunltles ln loglstlcs.
1he group ls ulso ln the process of evuluutlng opportunltles ln
thlrd purty loglstlcs ln lndlu. vhllst lncreused trude uctlvltles
wlll beneflt the ulr express und frelght forwurdlng buslnesses,
the potentlul loss of CSP preferentlul tux stutus ln the
eurozone could posslbly result ln lower export volumes to
Lurope ln the short term. Eowever, the lmpuct of thls on the
sector ls not expected to be muterlul.
1he Alrllnes sector hus seen the uddltlon of cupuclty wlth the
udvent of new ulrllnes operutlng lnto Srl Lunku. vhllst thls muy
result ln lncreused competltlon, the expected growth ln
pussenger und curgo volumes should compensute for thls.
1he Lelsure lndustry group ls orgunlsed ln to
Eotel Munugement
Clty Eotels
Resort Eotels
Srl Lunkun Resorts
Muldlvlun Resorts
Lestlnutlon Munugement
Representlng 'lE's slngle lurgest net usset exposure, the Lelsure lndustry group
encompusses two clty hotels thut offer oc per cent of the flve stur room cupuclty ln
Colombo und seven resort hotels spreud ln prlme tourlst locutlons ull over Srl Lunku und
four resorts ln the Muldlves. Offerlng beuches, mountulns, wlldllfe und culturul splendour
under the two brunds 'Clnnumon Eotels und Resorts' und 'Chuuyu Eotels und Resorts', the
hotel operutlons ure complemented by destlnutlon munugement buslnesses ln Srl Lunku,
Muldlves und lndlu.
zo
Review
1he Lelsure lndustry group ''set the puce'' wlth un lmpresslve
performunce on the buck of u turnuround ln lts Srl Lunkun
operutlons, whlle the contrlbutlon from Muldlvlun operutlons
ulso grew ln splte of dlfflcult condltlons for tourlsm globully.
As expected, the end to the confllct und the removul of truvel
udvlsorles hud u posltlve lmpuct on tourlsm ln Srl Lunku. 1otul
tourlst urrlvuls lncreused by zz per cent durlng the flnunclul
yeur.
All uspects of our Srl Lunkun operutlons beneflted from thls
lnflux of tourlsts. 8oth Clty Eotels und Srl Lunkun Resorts
wltnessed strong growth ln occupuncy flgures, purtlculurly ln
the thlrd und fourth quurters of the yeur. 1he uveruge room
rutes ulso suw lmprovement over the prevlous yeur,
purtlculurly ln Clty Eotels where u mlnlmum rute ugreement
wus relmplemented from November zcc. 1he destlnutlon
munugement buslness ln Srl Lunku wltnessed strong growth
of upproxlmutely o= per cent ln the number of pux hundled,
whlch ls ubove the murket growth rute.
1he Muldlvlun Resorts performed well desplte u drop ln
urrlvuls to the country. 1he uveruge occupuncy flgures of ull
resorts wlth the exceptlon of the relutlvely new property
wlthln the portfollo, Clnnumon lslund Alldhoo, performed
ubove the lndustry uveruge. Although urrlvuls from the
trudltlonul Luropeun murkets were somewhut uffected durlng
the yeur, u shlft ln urrlvuls from Chlnu und other emerglng
destlnutlons such us 'upun und Russlu offset thls lmpuct. As u
result, Muldlvlun Resorts hud u purtlculurly strong fourth
quurter performunce. 1he Mlnlstry of 1ourlsm ln the Muldlves
hus unnounced pluns to extend leuses of lslunds up to =c yeurs
to promote lnvestment. 1he group wus uble to extend the
tenure of the leuse ut Alldhoo by un uddltlonul c yeurs.
1he hotel und destlnutlon munugement lndustrles by nuture
ure typlcully hlgh ln flxed costs. 1hls hlgh operutlng leveruge
hud u slgnlflcunt lmpuct on the performunce of the hotels
und the Srl Lunkun destlnutlon munugement buslness. 1he
noteworthy growth ln revenues, whllst expenses lncreused ut
u relutlvely lower rute due to low lnflutlon und hlgh flxed costs
ussocluted wlth the buslnesses, resulted ln shurp lncrementul
proflts.
1he group's focus und efforts ln creutlng strong brunds
through the 'Clnnumon Eotels & Resorts' und 'Chuuyu Eotels
& Resorts' brunds huve luld u solld plutform for the promotlon
of lts hotel products. ve ure consclous of the need to
contlnuously evuluute und enhunce our servlce stundurds to
our customers. 1he muny uwurds won by the hotels
und destlnutlon munugement compunles demonstrute the
recognltlon of our efforts ln thls regurd. lurther detulls on
uwurds und certlflcutlons cun be found ln the Sustulnublllty
Report of the Croup.
Antlclputlng the growth ln tourlsm, the group commenced the
refurblshment of two propertles und ulso ucqulred u struteglc
block of lund durlng the yeur under revlew, detulls of whlch ure
us follows
1runs Aslu hotel whlch wus dumuged by the L11L ulr uttuck
just prlor to the end of the confllct wus refurblshed ut u
cost of Rs. ooo mllllon. 1he entlre common ureus, lncludlng
the lobby und cc rooms were refurblshed. 1he hotel wus
luunched us Clnnumon Lukeslde Colombo ln September
zcc.
o.6 ucres of lund ln 8eruwulu next to former Eotel 8uyroo
wus ucqulred from the Conflfl Croup ut u cost of Rs. z-.8
mllllon. 1hls property wlll complement the udjucent 6 ucre
lund held by the group und wlll ullow the development of
u better product wlth u wlder beuch front.
1he Club Oceunlc hotel ln 1rlncomulee wus closed down ln
ut the end of zcc for u Rs. o=c mllllon refurblshment. 1he
hotel wus reluunched ln Muy zcc us 'Chuuyu 8lu
1rlncomulee', the flrst four stur quullty hotel on the
Lustern coust.
1he holdlng compuny of Srl Lunkun und Muldlvlun Resorts,
'ohn leells Eotels PLC, rulsed Rs. -.6o bllllon through u rlghts
lssue ln Murch zcc to fund lnvestments ln the refurblshment
und constructlon of hotels over the next few yeurs.
Iinancial review
Revenue
Revenue lncreused by per cent to Rs. .=c bllllon
[zcc8jc: Rs. .66 bllllon|.
Lestlnutlon Munugement revenues lncreused slgnlflcuntly
by over =c per cent drlven by lts Srl Lunkun operutlons. lts
lndlun operutlng urm, Serene Eollduys ulso wltnessed
growth ln revenues.
Clty Eotels recorded un lncreuse ln revenues of = per cent
on the buck of growth ln Clnnumon Crund Colombo.
Revenues of Clnnumon Lukeslde Colombo were lower
thun lust yeur due to the closure of the hotel for = months
durlng the yeur.
Lrlven prlmurlly by lmprovement ln revenues of Srl Lunkun
Resorts und ulso growth ln Muldlvlun Resorts, the overull
revenue growth of the Resort Eotels sector wus , per
cent. ln ubsolute terms, Muldlvlun Resorts contlnues to be
the prlmury contrlbutor to revenue.
1urnover ,<oo ,66z .c ,,z
L8l1 ,a8< 6zo -8. ,zo
P81 ,o -- 6=8.- -6o
PA1 ;| z8 66c.z -o,
1otul ussets |z,<| z8,occ o.6 z8,c6,
1otul equlty z|,<|< 8,=z z6.6 8,z,,
1otul debt 6,oao ,,8 (6.c) ,,co,
Cupltul employed z,<;a z=,,8c o., z=,-z-
Cupltul expendlture ,z8 ,z- ,.c ,=8c
No. of employees a,| -,86 8.o o,=o
L8l1 per employee o.| c.z ., c.-
z=
L8I1
lncreused by Rs. 86 mllllon to Rs. .o bllllon [zcc8jc:
Rs. 6zo mllllon|.
All sectors contrlbuted towurds the lncreuse ln L8l1 led by
the contrlbutlon from Muldlvlun Resorts und Clnnumon
Crund Colombo, whlch were the prlmury contrlbutors to
L8l1.
Lestlnutlon Munugement recorded u strong lncreuse ln
L8l1 us ugulnst u breukeven L8l1 ln the prevlous yeur.
1he lncreuse ln revenues und gross murglns ln Resort
Eotels coupled wlth lower fuel prlces und the contlnuunce
of the electrlclty rebute ln Srl Lunku were key fuctors ln
controlllng other operutlng expenses, contrlbutlng to the
hlgher L8l1.
ROCL of =.o per cent us ugulnst z.o per cent ln the prevlous
yeur.
Cupltul employed lncreused to Rs. z.=, bllllon from Rs.
z=.,8 bllllon ln the prevlous yeur drlven by the lnfuslon of
cupltul to 'ohn leells Eotels through lts rlghts lssue ln
Murch zcc. 1hls hud u dlsproportlonute lmpuct on the
cupltul employed of the lndustry group, thereby negutlvely
lmpuctlng the ROCL.
L8l1 murglns lmproved slgnlflcuntly to z. per cent from
6.= per cent ln the prevlous yeur. L8l1 murglns ln ull sectors
showed lmprovement, purtlculurly ln the Muldlves.
Asset turnover lncreused murglnully to c.-8 us ugulnst c.-o
ln the prevlous yeur due to the lncreuse ln revenues.
1he outlook for tourlsm ln the country ls very posltlve wlth the
lndustry expectlng upproxlmutely mllllon urrlvuls ln the next
- yeurs und the Srl Lunku 1ourlsm 8ureuu turgetlng urrlvuls of
z.= mllllon by zc6. 1he uvullublllty of rooms wlll be u concern
golng forwurd lf these estlmuted numbers muterlullse. 1he
development und lnvestment ln lnfrustructure fucllltles
ussocluted wlth the lndustry ls vltul ln enhunclng the
posltlonlng of the destlnutlon. 1he group wlll contlnue to
lnvest ln our portfollo of exlstlng und new hotels to cuter to
the needs of u growlng und dlverse customer buse. ve ure
wltnesslng the emergence of severul new murkets lnto Srl
Lunku und the Muldlves und wlll cupltullse on our truck record
und ugent networks to tup lnto these murkets uggresslvely to
promote growth. 1he Lelsure lndustry group ulso hus the
beneflt of u vust lund bunk ln struteglc ureus of the country
such us the Lustern coust, Southern coust, the hlll country und
ln vlruwllu ln proxlmlty to the proposed locutlon of the
country's second lnternutlonul ulrport. 1hese propertles wlll
be developed us und when u requlrement urlses, ln llne wlth
the overull struteglc pluns of the lndustry group und the
development of the purtlculur destlnutlon und lts reluted
lnfrustructure.
1he prevulllng low lnterest envlronment und expectutlons for
rutes to remuln relutlvely low wlll beneflt Lelsure, conslderlng
the untlclputed lnvestment over the next few yeurs. ln splte of
the cupltul rulsed through the rlghts lssue, the projects wlll be
leveruged to mulntuln un ldeul cupltul structure. A chullenge
for the Lelsure lndustry group over the next yeur wlll be the
posslble uppreclutlon of the Srl Lunkun rupee, whlch could
uffect the revenues glven the lnflows ln US dollurs und rupee
cost structures. 1hls wlll be munuged on u prouctlve busls to
ensure mlnlmum exposure to such movements. 1he full ln the
8rltlsh pound und euro ure ulso potentlul ureus of concern.
1he focus on process lmprovement und enhunclng efflclencles
wlll contlnue wlth u vlew to lmprovlng operutlng murglns. 1he
Clty und Resort Eotels huve lmplemented certuln energy
conservutlon lnltlutlves to reduce the envlronmentul lmpuct of
thelr operutlons und ulso reduce costs. Muny hotels ln the
group ure worklng towurds obtulnlng 'Creen Clobe'
certlflcutlon durlng the next yeur, whlch should enhunce the
murketublllty of thelr product.
1he Lelsure lndustry group hus muny excltlng pluns to
cupltullse on the potentlul of Srl Lunku us u destlnutlon, ln
uddltlon to lts other lnvestments. lollowlng ure some of the
key pluns over the next yeur.
Refurblshment of z=o rooms ln the south wlng of the
Clnnumon Crund Colombo wlth un lnvestment of Rs. -cc
mllllon.
Refurblshment und upgrude of Clnnumon Lodge Euburunu
to be completed by 'uly zcc ut un lnvestment of Rs. -cc
mllllon und thereufter to obtuln flve stur stutus by
November zcc.
Refurblshment of Corul Curdens Elkkuduwu ut un
lnvestment of Rs. . bllllon. 1he hotel wlll be reluunched
under the Chuuyu Eotels & Resorts umbrellu when
reopened ln zc.
Constructlon of u c room o stur quullty hotel ln
8eruwulu, ut un lnvestment of Rs. z bllllon. 1he hotel ls
expected to be ln operutlon ln zczj-.
Refurblshment of Chuuyu Lugoon Eukuruu Euruu wlth un
lnvestment of USL z.6 mllllon ln summer zcc.
Soft refurblshment of 8entotu 8euch Eotel ut un
lnvestment of Rs. zcc mllllon to upgrude lts rooms und
lmprove certuln common fucllltles.
Ownlng u slgnlflcunt lund bunk ln prlme ureus of Colombo und the rest of the country, the
Property lndustry group ls one of the lurgest prlvute sector proprletors of reul estute ln Srl
Lunku. As the controlllng shureholder of Aslun Eotels und Propertles PLC the owners und
promoters of 'Crescut Clty' whlch houses the flve stur hotel 'Clnnumon Crund', the up
murket shopplng mull '1he Crescut 8oulevurd', the -cstorey luxury upurtment complex
'1he Monurch', the -=storey luxury upurtment complex, '1he Lmperor' und the 'Angsunu
Clty Club & Spu', the Property Levelopment urm concentrutes prlmurlly on development
und sule of resldentlul upurtments und the operutlons of the Crescut 8oulevurd.
Munugement und operutlon of offlce sltes wlthln the clty ure hundled under the Reul
Lstute urm.
z,
Review
1he property und reul estute lndustry ln the country
underwent tough condltlons ln the lust few yeurs us u result of
the globul flnunclul crlsls, the slowdown ln economlc growth ln
the country, hlgh lnterest rute envlronment und the country's
securlty sltuutlon. 1he hlgh end resldentlul upurtment murket
ln purtlculur wltnessed some contructlon due to thls crlsls.
1he Property lndustry group however wus uble to successfully
wlthstund the downturn, proceedlng wlth the flnul hundover
of the bulunce unlts of '1he Monurch' und the constructlon of
'1he Lmperor' u 6- unlt hlgh end resldentlul complex.
Although sules ut '1he Lmperor' durlng the eurly purt of the
yeur were very poor wlth the murket extremely slugglsh, the
murket plcked up durlng the lust quurter. Llghty two percent
of upurtments ut '1he Lmperor' huve been sold, leuvlng only u
bulunce of -c unlts. 1he lnterest ln the resldentlul unlts slnce
the end of the confllct hus been encouruglng, spurred on by
the drustlc reductlon ln lnterest rutes und the lncreused
wllllngness by bunks to lend. 1he depreclutlon of cross
currencles such us the 8rltlsh pound und euro ugulnst the US
dollur hud un lmpuct on some of our customers llvlng outslde
the Unlted Stutes us the upurtments ure prlced ln US dollurs.
1he performunce of the Reul Lstute sector, whlch munuges
the lnternul offlce spuce of the Croup, wus lower thun lust yeur
on uccount of relutlvely stugnunt rentul ylelds und rlslng costs.
lnltlutlves to control costs, especlully energy reluted costs
helped mltlgute the negutlve lmpuct to u greut extent.
Iinancial review
Revenue
Revenue lncreused - per cent to Rs. .6z bllllon [zcc8jc:
Rs. .=8 bllllon|.
Contlnued revenue recognltlon from the development of
'1he Lmperor' wus the prlmury contrlbutor to revenues.
8ulunce hundover of unlts ut '1he Monurch' wus currled
out through the yeur, enubllng recognltlon of revenues on
unlts hunded over.
Revenues of the Crescut 8oulevurd, the mull operutor,
were relutlvely flut on uccount of flut rentul ylelds. 1he
openlng of the rouds surroundlng the mull ls llkely to
posltlvely lmpuct footfull whlch should leud to lncreuses ln
rentul ylelds ln the future.
L8I1
Lecreused by Rs. oo mllllon to Rs. -88 mllllon [zcc8jc:
Rs. =-z mllllon|.
L8l1 decreuse drlven prlmurlly due to lust yeur's results
belng lncluslve of un lnvestment property revuluutlon. ln
uddltlon, the contrlbutlon from the Property Levelopment
sector wus lower thun lust yeur us the prevlous yeur's
lncluded u substuntlul umount of the proflts due to the
completlon of '1he Monurch' project.
Posltlve contrlbutlon to L8l1 from the Reul Lstute sector
desplte the reductlon ln rentul lncomes. Control of costs
through severul energy suvlng lnltlutlves hud u posltlve
lmpuct on L8l1.
ROCL of 6., per cent us ugulnst c.- per cent ln the
prevlous yeur.
1he L8l1 murgln dropped to zo.c per cent from --., per
cent ln the prevlous yeur.
Asset turnover decllned murglnully to c.z= from c.z8 ln the
prevlous yeur.
Cupltul employed lncreused to Rs. 6.- bllllon from Rs. =.o=
bllllon ln the prevlous yeur.
1urnover ,6zc ,=,8 z.6 z,68
L8l1 -88 =-z (z,.) cz
P81 -,8 =-= (z.o) 8o
PA1 -oz o86 (z.,) ,8=
1otul ussets 6,86 =,,-c z. =,occ
1otul equlty 6, =,oc -. o,,6=
1otul debt o -, (6.6) 8z
Cupltul employed 6,-o =,oo, z.6 o,8o,
Cupltul expendlture 6 z (=.,) 6
No. of employees co zc (-.-) 8
L8l1 per employee -., o.o (=.8) ,.6
z8
1he end of the confllct presents muny opportunltles for the
Property lndustry group. As stuted before, reductlons ln
lnterest rutes huve u dlrect correlutlon wlth lncreused demund
for property. Lxpectutlons of u relutlvely low lnterest rute
envlronment ln the short to medlum term ure expected to
spur growth of property prlces. vhllst the constructlon of
certuln resldentlul upurtments ln the murket wus termlnuted
by some developers due to luck of demund, thls sltuutlon ls
expected to reverse us u result of the turnuround ln the
economy. lncreused economlc uctlvlty und the return of
exputrlute Srl Lunkuns ure expected to boost the rentul
murket. 1hls ls expected to fllter through to demund for
upurtments us un lncreuse ln rentuls ls consldered u prlmury
drlver of reul estute vulues. 1he group wlll use lts lund bunk to
cuter to the development opportunltles uvulluble.
lollowlng ure some of the key developments und pluns of
Property over the medlum term.
1he group ls consclous of the demund for not only hlgh end
luxury upurtments, but ulso for mld end luxury upurtments
ln centrul locutlons wlthln Colombo. 1herefore the
extenslve lund bunk wlll be utlllsed to develop resldentlul
upurtments cuterlng to dlfferent segments of the murket
umongst other projects.
Offlce und retull spuce wlll be ln short supply over the
medlum term, leudlng to opportunltles for the
development und rentul of such spuce. 1he property
lndustry group wlll use lts experlence und expertlse ln thls
fleld to develop projects when the rlght condltlons
muterlullse.
vhllst the Property lndustry group ulreudy hus un extenslve
lund bunk ln Colombo, the group wlll focus on contlnulng to
bulld thls lund bunk. 1he pluns of the government to
develop certuln trunsportutlon, tourlsm und loglstlcs hubs
wlll creute opportunltles for property development ln these
ureus. 1he group ls ln the process of ldentlfylng und
evuluutlng opportunltles to expund lts lund bunk, both
wlthln und outslde of Colombo.
1he Consumer loods sector ls home to u portfollo of leudlng brunds lncludlng 'Llephunt'
curbonuted soft drlnks, 'Llephunt Eouse' lce creums und the 'leells' und 'lrest' runges of
processed meuts, ull consldered murket leuders ln thelr respectlve cutegorles und
supported by u wellestubllshed lslundwlde dlstrlbutlon chunnel.
1he Consumer loods sector of the lndustry group competes ln the followlng three mujor
cutegorles
8everuges
lrozen Confectlonury
Convenlence loods
1he Retull sector focuses on modern orgunlsed retulllng through the 'leells Super' chuln of
supermurkets und ln purtnershlp wlth Nutlons 1rust 8unk, hus creuted 'Nexus', the most
successful coulltlon loyulty curd ln the country.
Review
1he Consumer loods & Retull lndustry group experlenced u
chullenglng yeur wlth the flrst hulf of the flnunclul yeur stlll
experlenclng the effects of the globul economlc downturn.
1he Consumer loods sector wlth lts 'Llephunt Eouse' lce
creums und 'Llephunt' soft drlnks experlenced lower
consumer spendlng on lts premlum brund products us the
consumers wlth conservutlve spendlng hublts mlgruted
towurds the lower prlced, smuller slzed puckuges. Eowever
umldst stlff competltlon from multlnutlonuls, the beveruge
segment suw un lncreuse ln volumes und resultuntly murket
shure durlng the lust quurter of the yeur. Lurlng the yeur, the
sector lntroduced numerous products to lts ulreudy exlstlng
runge of products lncludlng the 'wlnter sllce' lce creum, u flrst
of lts klnd ln the country thut wus speclully deslgned for the
Chrlstmus seuson. Lurlng the second hulf of the yeur, the
reuch of the lce creum und soft drlnk murkets wus expunded
to lnclude the consumers ln the North und the Lust.
1he convenlence food segment too experlenced the negutlve
effects of the conservutlve consumer spendlng hublts, und u
chullenglng flrst yeur of operutlons ln the lndlun murket. 1he
Srl Lunkun murket hus seen some revlvul wlth lncreused
consumer confldence und the reluunchlng of the chlcken
meut bulls us well us the lntroductlon of the cooked flsh
product. 1he chlcken meut bulls wlll extend our reuch through
the umblent chunnel ln uddltlon to the frozen chunnel thut hus
been used. Lven though there wus success wlth brund
penetrutlon ln the key select geogruphles ln lndlu, the flrst
yeur of operutlons hlghllghted the ureus thut requlred revlew,
flne tunlng und u course chunge. A plun of uctlon ls ulreudy ln
pluce to lmplement these chunges.
1he Retull sector too showed much of the sume consumer
trends us thut of the lce creums, soft drlnks und reudytoeut
foods. lurthermore, due to prlce controls lmposed, murglns of
some hlgh volume ltems reduced drustlcully resultlng ln u
negutlve lmpuct. Eowever, the lmproved murket sentlment
und consumer confldence ln the second hulf of the yeur
coupled wlth process lmprovements helped the sector
perform relutlvely better thun lt dld ln the pust yeurs. Also
uddlng to the posltlve growth wus the full yeur's contrlbutlon
of outlets opened ln the prevlous yeur. 1he supermurket chuln
ulso lntroduced muny new prlvute lubel products und mude
uvulluble un ussortment of lmported seusonul products for
Chrlstmus. 1he newly opened outlet ln Culle ls the furthest the
chuln hus ventured ln to the Southern reglon of Srl Lunku und
the lnltlul results huve been promlslng.
Iinancial review
Revenue
Revenue lncreused z per cent to Rs. =.8o bllllon [zcc8jc:
Rs. o.- bllllon|.
Crowth led by lncreuse ln Retull sector revenues by 8 per
cent over the prevlous yeur drlven by lncreused footfull.
Revenue growth wus ulso drlven by the full yeur
contrlbutlon of the outlets opened ln the prevlous yeur.
Consumer loods revenues grew by 6 per cent drlven by
Ceylon Cold Stores (CCS) whlch ls the prlmury contrlbutor
to thls sector.
'ohn leells loods lndlu ('lll) commenced operutlons
durlng the yeur resultlng ln lncrementul revenues to the
consumer foods segment. 1he Srl Lunkun operutlons
recorded u murglnul decllne ln revenues.
L8I1
Lecreused by Rs. ,o mllllon to Rs. ozc mllllon [zcc8jc:
Rs. oo mllllon|.
ln splte of u steudy contrlbutlon to L8l1 from CCS, the L8l1
of Consumer loods wus negutlvely lmpucted due to the
losses ln 'lll us u result of lncreused dlstrlbutlon und
murketlng costs.
1he Retull sector recorded u turnuround ln L8l1 wlth u
posltlve contrlbutlon thls yeur us ugulnst u negutlve
contrlbutlon ln the prevlous yeur.
-c
1urnover <,8a| o,-c z. ,-8o
L8l1 azo oo (=.c) =8c
P81 z88 z,8 -.= -8,
PA1 88 z (z,.6) zo8
1otul ussets ;,oz< ,,c=, (c.=) 6,=6-
1otul equlty |,8 -,c= o.- z,6o
1otul debt 86 ,oc8 (oz.c) ,=,z
Cupltul employed |,; o,o6c (c.o) o,z66
Cupltul expendlture z;o o, (o-.6) ,=o
No. of employees z,8;8 -,c6 (o.6) z,86
L8l1 per employee o. c.z (c.) c.z
-
ROCL of . per cent us ugulnst .- per cent ln the
prevlous yeur.
L8l1 murglns dropped to z.6 per cent from -.= per cent ln
the prevlous yeur due to the hlgh operutlng cost of 'lll
und resultunt losses.
Asset turnover lncreused to z.z= from z.c8 ln the prevlous
yeur drlven by revenue lncreuses ln Retull und Ceylon Cold
Stores.
1he lce creum segment pluns to expund the lmpulse product
runge by lnvestlng ln new muchlnery. As one of the growlng
murkets ln the lrozen Confectlonury segment, thls runge of
products wlll complement the exlstlng fluvoursjproducts ln
the tuke home segment und enhunce the vlslblllty of the
'Llephunt Eouse' brund.
1he reudytoeut lndustry unulysls performed ln Srl Lunku hus
glven lnslghts to u future growth ln demund for prepured food
wlthln the Srl Lunkun food culture where tuste, novelty,
convenlence und quullty ure consldered the key drlvers. 1hls
hus hlghllghted the opportunlty for us to be u pluyer ucross the
dully meul occuslons und leells loods ls uctlvely lnvolved ln
the reseurch und development of new products wlth
purtlculur emphusls on the lntroductlon of shelf bused
products, heulthlerjnutrltlonul food solutlons und the
expunslon of the Eulul runge.
1he supermurket chuln wlll be looklng to expund outslde of
the vestern provlnce, brlnglng convenlence closer to the
homes of these consumers. 1he chuln wlll ulso muke lt u
prlorlty to glve lts customer buse new und excltlng product
offerlngs.
vlth the lmproved country sltuutlon, the lndustry group wlll
focus on uctlvely expundlng the murket buse wlth u focus
on lntroduclng new und excltlng fluvoursjproducts und retull
outlets.
1he llnunclul Servlces lndustry group operutes ln the followlng sectors
lnsurunce
8unklng & Leuslng
Stockbroklng
1he cluster of flnunclul servlces compunles offer u complete runge of flnunclul solutlons
lncludlng commerclul bunklng, lnsurunce, stockbroklng, debt trudlng, fund munugement
und leuslng wlth the vlslon of becomlng u leudlng pluyer ln the flnunclul servlces sector
offerlng u totul solutlons puckuge to our customers.
--
Review
1he llnunclul Servlces lndustry group hud un lmpresslve yeur
wlth strong performunces by the lnsurunce, 8unklng und
Leuslng und Stockbroklng sectors. 1hese results were
uchleved ugulnst the buckdrop of the Srl Lunkun flnunclul
servlces lndustry encounterlng muny setbucks durlng the
course of lust yeur. 1he end to the confllct presents numerous
opportunltles for the bunklng und lnsurunce buslnesses. 8oth
these buslnesses huve ulreudy expunded thelr operutlons ln
the North und Lust wlth more developments on the curds.
Unlon Assurunce (UA), the lnsurunce urm of the group, wus
the flrst lnsurer to open un offlce ln Polnt Pedro ln the 'uffnu
penlnsulu. UA now hus =6 locutlons ucross Srl Lunku.
1he performunce of UA durlng the yeur wus steudy desplte
dlfflcult condltlons ln the domestlc economy. 1he compuny
munuged to grow lts llfe und generul lnsurunce buslness whllst
ensurlng lt met lts struteglc objectlves. UA luunched the
'Unlon Eeulth Leposlt', the flrst und only heulth lnsurunce
pollcy ln the murket thut puys lnterest on premlums puld. UA
ulso luunched 'Unlon Motor Reloud', where customers cun
purchuse thelr motor lnsurunce for , - or 6 months. ln
uddltlon to the lntroductlon of new products, UA udded
unother bunk to lts puyment purtners to udd convenlence to
lts customers ln muklng premlum puyments. Lurlng the yeur,
the lnsurunce lndustry wltnessed events thut muy leud to the
creutlon of un uneven pluylng fleld. Approvul wus grunted to
the Nutlonul lnsurunce 1rust lund, un lnstltutlon not reguluted
by the lnsurunce 8ourd of Srl Lunku to enter the murket.
lurther, u clrculur lssued by the 1reusury stuted thut ull
government und semlgovernment lnstltutlons should pluce
thelr buslness wlth two speclfled 'government' entltles.
1he stockbroklng unlt, 'ohn leells Stockbrokers ('lS8) hud u
remurkuble yeur us u result of the lncreused turnover
wltnessed on the Colombo Stock Lxchunge (CSL). 1he CSL
recorded u slgnlflcunt lncreuse of z, per cent durlng the yeur
wlth un uveruge dully turnover of Rs. 8= mllllon us ugulnst Rs.
o=c mllllon ln the prevlous yeur.
ln splte of some lnternul operutlng control lssues fuced,
purtlculurly u breuch of procedures ln lts forelgn exchunge
trudlng, Nutlons 1rust 8unk (N18) hud u commenduble
performunce ln respect of most key lndlcutors. Lurlng the
yeur, the bunklng lndustry fuced negutlve credlt growth,
deterlorutlng credlt quullty und lncreused prlce competltlon. ln
splte of these negutlve fuctors, the core bunklng lncome und
proflts of N18 lncreused durlng the yeur. 1he bunk took
udvuntuge of the end to the confllct und opened u brunch ln
vuvunlyu, ln the Northern Provlnce of Srl Lunku.
Iinancial review
Revenue
Revenue lncreused =8 per cent to Rs. .oo bllllon [zcc8jc:
Rs. =.8 bllllon|.
lncreuse drlven prlmurlly by the lmpuct of consolldutlng
the revenues of UA over u z month perlod us opposed to
the group shure of revenues when treuted prlmurlly us un
ussoclute the prevlous yeur.
Croup shure of revenues of the 8unklng & Leuslng
segment lncreused on uccount of the growth ln revenues
of N18.
1he Stockbroklng sector recorded u slgnlflcunt lncreuse ln
revenues due to hlgher trudlng uctlvlty, ulbelt off u smull
buse.
1urnover* ,a|< =,, =,.8 -,,
L8l1 8a8 o86 ,o.= ozz
P81 868 o86 ,8., ozz
PA1 <|o -- =6.z zz
1otul ussets z,a6 ,,8,8 zc.c z,===
1otul equlty 6,z;o =,=,c z.6 ,c
1otul debt z6 o,c8.6 z
Cupltul employed** 6,|6 =,=, o.8 z,cc-
Cupltul expendlture 8o o ,zo., c.-
No. of employees 6 zo ,.8 zo
L8l1 per employee*** o. c.= 6. ,.6
** |or assocate companes tne captal employed s representatve oj tne croup's equty
-o
L8I1
lncreused by Rs. -6z mllllon to Rs. 8o8 mllllon [zcc8jc:
Rs. o86 mllllon|.
L8l1 of 8unklng & Leuslng sector lmproved us u result of
fulr growth ln Nutlons 1rust 8unk, whlch ls the prlmury
contrlbutor to the lndustry group's L8l1.
Slgnlflcunt lncreuse ln L8l1 contrlbutlon from the
stockbroklng buslness whlch recorded slgnlflcunt
lncreuses ln L8l1 due to the lncreuse ln revenues.
1he lnsurunce sector ulso recorded un lncreuse ln L8l1 on
the buck of lncreused revenue growth und mulntenunce of
murglns.
ROCL of o.z per cent compured to z.8 per cent ln the
prevlous yeur.
lmprovement ln L8l1 murgln to .c per cent us ugulnst 8.
per cent ln the prevlous yeur, drlven purtlully by the
lncreused L8l1 contrlbutlon from the stockbroklng
buslness, whlch ls u hlgh murgln buslness.
ln splte of the slgnlflcunt growth ln revenues of UA, the
usset turnover fell to c.o8 tlmes compured to c.= tlmes ln
the prevlous yeur due to hlgher growth ln totul ussets.
1he outlook for the flnunclul servlces lndustry ls promlslng.
1he untlclputed growth ln CLP und the openlng up of the
North und Lust of the country present numerous
opportunltles for the entlre lndustry. vhllst N18 und UA huve
both expunded operutlons ln certuln ureus of the North und
Lust, further development wlll present muny opportunltles to
tup the retull murket. 1he stockbroklng buslness ls expected
to contlnue performlng well wlth the contlnued optlmlsm und
untlclputed performunce of the CSL. Lxpectutlons for lnflutlon
und lnterest rutes to remuln relutlvely low should spur prlvute
sector credlt growth, posltlvely lmpuctlng the bunklng und
leuslng buslnesses. Low lnterest rutes wlll ulso boost equlty
murkets us funds shlft from flxed lncome. 1he stockbroklng
buslness wlll contlnue to beneflt from such u shlft, purtlculurly
conslderlng the hlgh flxed costs und resultunt operutlng
leveruge thut the buslness enjoys.
lollowlng ure some of the key developments untlclputed ln
the llnunclul Servlces lndustry group over the next yeur.
1he uglng populutlon, lncreused dlsposuble lncome ucross
ull geogruphlc sectors of Srl Lunku und relutlve under
penetrutlon, polnt to un excltlng future for the llfe
lnsurunce lndustry. UA wlll contlnue to lnvest ln the llfe
buslness ln terms of dlstrlbutlon expunslon, product
lnnovutlon und servlce excellence ln order to muke further
lnrouds lnto thls segment.
UA untlclputes thut soft murket condltlons wlll prevull ln
the generul lnsurunce lndustry. UA wlll therefore focus on
developlng cost effectlve dlstrlbutlon und operutlng
models, wlthout compromlslng lts servlce stundurds or
prlclng dlsclpllne.
1he stockbroklng lndustry ls expected to huve = new
pluyers enterlng the fruy ln the new yeur, whlch could
lnclude bunks us well. 'lS8 belleves thls lncreused
competltlon wlll be compensuted for by the lncreuse ln
turnover und trudlng volumes, ulthough the retull
presence und network of bunks wlth stockbroklng llcenses
wlll glve these bunks un edge, purtlculurly outslde of
Colombo. Retentlon of our loyul cllent buse und humun
resources wlll pluy u vltul role ln the comlng yeur.
1he posslblllty of the regulutory uuthorltles further
reduclng brokeruge fees could huve un lmpuct on the
proflt growth potentlul of 'lS8.
Nutlons 1rust 8unk wlll contlnue to lmprove lts core
bunklng profltublllty whllst focuslng on customer servlce
und convenlence us u dlfferentlutor to both guln und retuln
customers. 1he expected plck up ln economlc uctlvlty ls
llkely to leud to prlvute sector credlt growth und ulso
lncreused dlsposuble lncomes. 1hese fuctors wlll huve u
posltlve lmpuct on the bunklng, credlt curd und leuslng
buslnesses of the bunk.
1he lnformutlon 1echnology lndustry group ls orgunlsed ln to
l1 Servlces
Softwure Servlces
Offlce Automutlon
l1 Lnubled Servlces
1he lndustry group hus u vlslon of provldlng quullty, worldcluss lnformutlon
communlcutlon technology servlces from 8PO, softwure servlces und lnformutlon
lntegrutlon to offlce uutomutlon by offerlng endtoend lC1 servlces und solutlons. vlth u
strong customer buse ln Srl Lunku, the rest of South Aslu, us well us the Ul, Mlddle Lust,
Scundlnuvlu und the lur Lust, we ure ut the forefront of muklng Srl Lunku un lC1 hub ln
South Aslu.
-6
Review
1he l1 lndustry group conslstlng of l1 Servlces, Offlce
Automutlon und l1 Lnubled Servlces wus uffected by the
prevulllng recesslonury condltlons ln Srl Lunku us well us ln the
overseus murkets.
Although the economlc downturn wus felt by the 8PO
operutlons especlully ln lndlu us the work outsourced by
cllents showed un overull decllne, muklng the ucqulsltlon of
new cllents dlfflcult, the enhunced operutlonul efflclencles und
cost munugement strutegles enubled the lndlun 8PO
operutlons to be profltuble.
Lurlng the yeur, the Offlce Automutlon buslness udded
complementury llnes whlch enhunced lts exlstlng product
runge wlth 1oshlbu. 1hrough u new relutlonshlp wlth
Sumsung, multl functlonul prlnters were successfully luunched
durlng the yeur wlth u runge of models belng dlstrlbuted
throughout the lslund. 1he lnltlul feedbuck recelved regurdlng
thls new runge of products ls posltlve.
ln the l1 Servlces sector, 'ohn leells Computer Servlces ('lCS)
lntroduced u new web bused softwure product for hospltullty
munugement. 1he softwure feutures u centrul reservutlon
system, property munugement system und un lnternet
booklng englne offerlng ull the trupplngs of un enterprlse
cluss multlproperty system.
Lurller ln the yeur 'lCS ulso successfully luunched un lnternet
bused booklng englne for llngflsher Alrllnes.
Iinancial review
Revenue
Revenue fell = per cent to Rs. z.= bllllon [zcc8jc: Rs. z.,-
bllllon|.
Lrop ln revenues uttrlbutuble to lower revenues of the
Softwure Servlces buslness comprlslng of 'lCS due to the
slowdown ln globul economlc uctlvlty und ln purtlculur the
lndustrles to whlch lt cuters.
Revenues of the Offlce Automutlon buslness whlch ls the
prlmury contrlbutor to the lndustry group grew murglnully.
1he lndlun bused 8PO operutlons recorded flut revenues
due to the lmpuct of the uppreclutlon of the lndlun rupee.
L8I1
lncreused by Rs. -o mllllon to Rs. 6 mllllon [zcc8jc:
Negutlve Rs. 8 mllllon|.
1he turnuround ln L8l1 wus drlven by the lmproved
performunce of the lndlun bused 8PO operutlons whlch
operuted ulmost on u breukeven busls compured to
slgnlflcunt losses ln the prevlous yeur.
Offlce Automutlon contlnued to muke u slgnlflcunt
contrlbutlon to L8l1 of the lndustry group, mulntulnlng lts
steudy performunce durlng the yeur.
1urnover* z,<o z,,- (=.z) z,zo-
L8l1 6 (8) (-.6) 6
P81 a (z) (.z) c
PA1 8 (6,) (c.6) o-
1otul ussets ,;|6 ,8co (-.,) z,c
1otul equlty ,|6o ,o, (o.c) ,,,=
1otul debt z< =c (o.) z
Cupltul employed** ,|86 ,o6, (=.6) ,,,,
Cupltul expendlture | 6o (,.o)
No. of employees 88 6-8 z8.z ,cc
L8l1 per employee*** o.o (c.z) (c.6) c.
** |or assocate companes, tne captal employed s representatve oj tne croup's equty
JJJJ
-,
1he Softwure Servlces buslness recorded u negutlve L8l1
on the buck of lower revenues und hlgh flxed cost
component comprlslng mulnly of employee reluted
expenses.
ROCL of . per cent us compured to u negutlve ROCL of ,.-
per cent ln the prevlous yeur.
lmproved L8l1 murgln of c.6 per cent us ugulnst u negutlve
o.- per cent ln the prevlous yeur due to lmproved L8l1 ln
splte of the reductlon ln revenues.
Asset turnover lmproved to .o6 tlmes us ugulnst .oc
tlmes ln the prevlous yeur.
Iuture outlook
vlth the expected globul economlc recovery, the lndustry
group wlll be looklng to tuke un uggresslve expunslon puth ln
the comlng yeurs. 1he prlmury focus of the l1 Servlces & l1
Lnubled Servlces wlll be to expund ln to the overseus murkets
wlth the softwure ulreudy developed. 1he murketlng of the
hotel munugement us well us the ulrllne solutlon softwure thut
were developed locully wlll be strengthened. As purt of the
expunslon pluns the sector ls looklng for sultuble purtners.
Offlce Automutlon wlll be seeklng to expund the runge of
solutlons lt wlll be murketlng under the exlstlng brunds ln
order to provlde u wlder cholce to the customers. Leveruglng
on Sumsung's stutus us the leudlng globul brund ln electronlcs
enjoylng top posltlons ln muny cutegorles, severul new llnes
ure sluted for luunch ln the comlng yeur for the 8uslness to
8uslness murket lncludlng lurge formut dlspluy devlces.
1he plunned luunch of Sumsung moblle phones ln the comlng
flnunclul yeur ls forecust to provlde u plutform for exponentlul
growth of the Offlce Automutlon buslness. Sumsung hus
uchleved murket leuder stutus ln key lndustrlullsed countrles
from North Amerlcu to Lurope und wlll provlde opportunltles
for the growlng Srl Lunkun subscrlber buse wlth u cholce of
leudlng models of hundsets for flrst tlme und replucement
users.
lnfomute (Pvt) Ltd, the provlder of outsourced flnunce und
uccountlng servlces mulnly to 'lE Croup compunles, wlll
contlnue to seek externul customers to cupltullse on lts
expertlse developed ln servlclng the Croup compunles.
As for the lndlu bused compunles ln the l1 Lnubled Servlces
sector, there huve been posltlve leuds ln terms of gulnlng
more overseus customers. lurther wlth stublllty returnlng to
Srl Lunku, the Srl Lunkun 8PO operutlons wlll huve u better
opportunlty to uttruct overseus cllents. 1hus, the growth
prospects for the sector ure encouruglng.
Other buslnesses ln the 'lE portfollo lnclude
Pluntutlon Servlces
1eu und rubber broklng
1eu smullholder fuctorles
'ohn leells Cupltul
1eu Smullholder luctorles PLC ls umongst the top munufucturers of orthodox low grown
teus und ulso recognlsed us the producer of the best C1C teus ln Srl Lunku. vlth over -c
yeurs of experlence ln the teu trude, 'ohn leells PLC ls percelved to be the leudlng teu
broker, purtlculurly ln the ureu of buslness ethlcs. Our wurehouslng fuclllty ls the lurgest
und one of the best stuteoftheurt complexes ln the country, for preuuctlon produce.
lnfuslng lnternutlonul best pructlces ln the productlon und sule of ''Ceylon 1eu'', 'ohn
leells PLC hus been u steudfust purtner to Srl Lunku's top lncome eurnlng teu lndustry.
-
Review
Plantation Services
Pluntutlon Servlces recorded u good yeur wlth slgnlflcunt top
und bottom llne growth by both 1eu Smullholder luctorles PLC
(1Sl) und 'ohn leells PLC ('l PLC). ln splte of globul
commodlty prlces belng relutlvely flut, the prlce of teu
lncreused compured to the prevlous yeur us the world supply
fell well short of demund. Lurlng the yeur, wuge hlkes were
unnounced und lmplemented. 1hese wuge hlkes hud u
slgnlflcunt lmpuct on growers, but only u moderute lmpuct on
the operutlons of 1Sl whllst 'l PLC wus not dlrectly uffected.
1he posltlve fuctor urlslng from the negotlutlons on the wuges
wus thut for the flrst tlme wuge hlkes were llnked to
productlvlty. 1hls uuguers well for the lndustry where u rlght
bulunce needs to be lnstulled between productlvlty und
wuges. 1he reductlon ln lnterest rutes helped smull holders to
fund thelr operutlons. 1he government contlnued to provlde
concesslons to the lndustry by wuy of subsldles on fertlllser
und rellef on hlgher turlffs on electrlclty.
1ohn keells Capital (1k Capital)
On u yeur on yeur compurlson, the performunce of 'l Cupltul
compured to the prevlous yeur wus lower due to the prevlous
yeur huvlng both the Assocluted Motorwuys PLC (AMv)
cupltul guln of Rs. .c- bllllon und the negutlve goodwlll on
Unlon Assurunce whlch wus purtlully compensuted by the guln
on the sule of u portlon of the leells hotels rlghts. Lurlng the
yeur, the group ''set the puce'' wlth lts flrst foruy lnto the
heulthcure lndustry wlth lts lnvestment ln the prlvute
plucement of Centrul Eospltul (Prlvute) Llmlted ut un
lnvestment of Rs. cc mllllon under lts prlvute equlty
lnvestment urm, 'l Cupltul.
Iinancial Review
Revenue
Revenue lncreused z per cent to Rs. z.8z bllllon [zcc8jc:
Rs. z.,= bllllon|.
Pluntutlon Servlces revenues lncreused by -o per cent on
the buck of strong contrlbutlons by 1Sl und 'l PLC us u
result of lncreused volumes ut 1Sl und un overull
lmprovement ln prlces.
1hls lncreuse wus offset by the ubsence of the group shure
of revenues of AMv ln the current yeur.
L8I1
Lecreused by Rs. .z, bllllon to Rs. z.-6 bllllon [zcc8jc:
Rs. -.6- bllllon|.
Lecreuse prlmurlly due to the oneoff cupltul guln on sule
of AMv us well us the negutlve goodwlll of Unlon
Assurunce belng lncluded ln the L8l1 of lust yeur. 1hese
were purtlully offset by the guln on the sule of u portlon of
'ohn leells Eotels rlghts us explulned eurller.
lmproved L8l1 contrlbutlon from Pluntutlon Servlces
drlven by lncreused contrlbutlons from 'l PLC und 1Sl.
ROCL of ,.8 per cent compured wlth z6.= per cent ln the
prevlous yeur.
1he hlgh L8l1 murgln ls due to the holdlng compuny
contrlbutlon to L8l1 wlth no correspondlng revenue.
Lven though the L8l1 murgln ls hlgh, lt reduced to 8-.6 per
cent from -., per cent ln the prevlous yeur due to the
lmpuct of AMv und Unlon Assurunce us explulned eurller
whlch were purtlully off set by the guln on the leells
Eotels rlghts.
1urnover* z,8z z,,=o z.o o,,6
L8l1 z,|< -,6z8 (-=.c) ,8
P81 ,6z z,6z (oc.) ,ozc
PA1 ,|zo z,occ (o=.c) co
1otul ussets a,o8 6,o66 (o.=) -,zo
1otul equlty z,z8 z,8zz (8.6) 8,z88
1otul debt o,|| z,== (.=) -,68
Cupltul employed** z,a| =,o, (.o) ,6
Cupltul expendlture 6 zc (o8.8) o-
No. of employees ,zz; ,,o o.= ,-8c
L8l1 per employee*** . -. (-,.8) .o
** |or assocate companes, tne captal employed s representatve oj tne croup's equty
oc
Slmllurly, the usset turnover of c. tlmes ls ln llne wlth the
prevlous yeur due to the holdlng compuny not huvlng
revenue.
1he outlook for Pluntutlon Servlces ls posltlve wlth
expectutlons of growth ln volumes due to productlon
lncreuses, weuther permlttlng, und mulntenunce of current
prlce levels. 1he slow but gruduul recovery of developed
economles should lmpuct commodlty prlces leudlng to
posslble lncreuses ln teu und rubber prlces. 1he locul teu
lndustry wlll contlnue looklng ut productlon efflclencles und
enhunced ylelds to ensure competltlveness ugulnst teu
produclng nutlons such us vletnum, lndoneslu umongst
others. lt ls lmportunt thut efforts on bulldlng the 'Ceylon teu'
brund contlnue uggresslvely to lncreuse loyulty und educute
consumers.
1he posslble uppreclutlon of the Srl Lunkun rupee could huve
un lmpuct on export reluted buslnesses wlth US dollur
denomlnuted lncome streums und rupee cost structures.
vhere posslble, the group wlll tuke necessury uctlons to
mlnlmlse the exposure und volutlllty urlslng from such
movements. As ln the pust, contlnued efforts on process
lmprovement und cost efflclencles wlll be looked ut ln the
ensulng yeur.
lollowlng ure u few of the key pluns of Pluntutlon Servlces
over the ensulng yeur.
lnvestment of upproxlmutely Rs. z,= mllllon by 1Sl ln u z
yeur fuctory development progrumme to lncreuse
competltlveness of growers.
A sustulnublllty lnltlutlve by provldlng development
usslstunce to smull holder growers to enhunce productlvlty
of thelr lunds und ulso thelr socluleconomlc stundlng.
o
1he 'lE Croup hus been reuplng the beneflts of uctlvely
munuglng und evuluutlng lts portfollo of buslnesses. 1he
Croup hus been ldentlfylng und lnvestlng ln better performlng
sectors of the economy, whlle reduclng lts exposure ln the
underperformlng lndustrles. 1hls hus enubled the Croup to
strlke u rlght bulunce ln lts wldely dlverslfled portfollo und
consolldute lts posltlon.
1he process undertuken for thls purpose ls bused on
contlnuous evuluutlon und revlew of the performunce,
potentlul und longer term prospects of our lndustry groups,
sectors und compunles, grounded on four fllters
'llnunclul fllter' thut hus the 'lE hurdle rute (requlred
rute of return) us lts corner stone
'Crowth fllter' whlch evuluutes u buslness ln terms of lts
lndustry uttructlveness
'Struteglc flt' thut crltlques the long term competltlve
udvuntuge of u buslnessjlndustry by evuluutlng the
strength of competltlve forces, speclflc lndustryjbuslness
rlsks, ublllty to control vulue drlvers und the competencles
und crltlcul success fuctors ulreudy lnherent ln the Croup
compuny
'Complexlty fllter' whlch conslders fuctors such us senlor
munugement tlme und the rlsk to brund, lmuge und
repututlon
'lE's hurdle rute ls u functlon of the welghted uveruge cost of
cupltul (vACC), derlved from the Croup's cost of equlty, cost
of debt, turget leveruge, tux rutes und the vulue creutlon
premlum requlred over und ubove the vACC. Struteglc
buslness unlts ure ussessed for rlsk under heudlngs such us
customer concentrutlon, suppllersj'v purtner dependence,
rlsk of lnternutlonul entrunts, lubour dependence, cycllcullty,
dependence on Srl Lunkun economy, und regulutory
dependence etc.
1he Lelsure lndustry group suw un lncreused ROCL durlng the
yeur. 1he Clty Eotels sector demonstruted lncreuses ln lts
ROCL desplte the lnvestment to fucllltute the refurblshment
und rebrundlng of Clnnumon Lukeslde. ln uddltlon, the posltlve
trend ln the tourlsm lndustry ln Srl Lunku enubled the Resort
Eotels sector to uchleve u posltlve ROCL us opposed to the
negutlve ROCL ln the prlor yeur. A substuntlul level of cupltul
wus rulsed ln Murch zcc through the 'ohn leells Eotels rlghts
lssue to fucllltute new lnvestments und lmprovements ln the
Resort Eotels sector. As the cupltul wus rulsed ut the end of
the yeur, lt hud u dlsproportlonute lmpuct on the cupltul
employed of both Srl Lunkun und Muldlvlun Resorts. 1he Eotel
Munugement sector contlnued to muke u heulthy contrlbutlon
towurds the overull ROCL of the lndustry group. 1he
Lestlnutlon Munugement sector, whlch eurned u return over
und ubove the Croup's hurdle rute durlng the flnunclul yeur ln
concern, suw un lmprovement prlmurlly due to the plck up ln
tourlst urrlvuls.
1he Pluntutlons sector contlnued to generute u return over the
Croup's hurdle rute, owlng to the lmproved performunce due
to the lncreuse ln crop prlces durlng the flnunclul yeur.
1he 1runsportutlon lndustry group recorded u ROCL of ,.- per
cent. 1he L8l1 murgln lmproved to 6. per cent from =.z per
cent ln the prevlous yeur, us u result of un lmproved
performunce mulnly from the Ports und Shlpplng urm.
Consumer loods sector suw lts ROCL full to -.o per cent from
the prlor yeur level of 6. per cent. 1hls wus mulnly due to the
low L8l1 performunce from the lndlun operutlons of leells
loods, whlch offset the posltlve lmpuct from the substuntlul
reductlon ln the debt posltlon of Ceylon Cold Stores (CCS). ln
contrust the Retull sector suw lts return lmprovlng to posltlve
flgures ln the current yeur us u comblned effect of decreused
borrowlngs und posltlve L8l1 for the yeur.
llnunclul Servlces lndustry group suw un lncreuse ln lts ROCL
mulnly due to the full yeur's shure of the Unlon Assurunce
proflt belng consollduted ln the flnunclul yeur. ln uddltlon, the
stockbroklng urm too performed well wlth u substuntlul level
of L8l1 eurned ln compurlson to the prevlous yeur, ln llne wlth
the excellent yeur experlenced by the Colombo stock murket.
1he ROCL of the Property lndustry group decreused to 6., per
cent from lust yeur's level of c.- per cent. 1he reductlon ls
uttrlbutuble to the decreuse ln L8l1 us dlscussed ln the
lndustry Croup Anulysls sectlon of the report.
l1 lndustry group mulnly bucked by the upturn ln L8l1 ln the
8PO operutlons ln lndlu, dlspluyed u posltlve lmprovement ln
lts ROCL ln compurlson to the negutlve levels of lust yeur.
POR1IOLIO MOvLMLN1 AND LvALUA1ION
oz
o-
1otul number of shures ln lssue
us ut -jc-jzcc 6,o,-,6-z
lree llout 68.8,
Stock Symbol 'lE.Ncccc
Newswlre Codes
8loomberg 'lE.SL
Low 'ones P.'lE
Reuters 'lE.CM
1he 1kB share
1he successful cessutlon of the -c yeur long confllct thut hud
engulfed ulmost ull uspects of the Srl Lunkun economy, puved
the wuy for the Colombo Stock Lxchunge (CSL) to huve u
record growth of z, per cent ln the All Shure Prlce lndex
(ASPl) und o, per cent ln the Mllunku Prlce lndex (MPl) durlng
the current flnunclul yeur.
1he 'lE shure whlch sturted the flnunclul yeur ut u low of
Rs. 6z.,= due to the weukness ln the overull murket sentlment,
suw lts stock prlces cllmb to Rs. 8o.cc us ut - Murch zcc us
u result of lncreused lnvestor confldence ln the 'lE shure und
the domestlc equlty murket. 1he shure truded between u hlgh
of Rs. 88.cc und u low of Rs. 6z.=c ln the yeur under revlew.
1he slgnlflcunt growth ln the 'lE shure of - per cent durlng
the yeur, resulted ln the shure outperformlng both the ASPl
und the MPl. 1he Croup uttulned u mllestone ln lts shure
performunce by crosslng the USL bllllon murk ln murket
cupltullsutlon, und remulned the top murket cupltullsed
compuny on the CSL, ''settlng the puce'' to reuchlng new
helghts ln the equlty murket. 1he 'lE murket cup wus .o
percent of the totul murket cup of the CSL.
1he lnterest ln the 'lE shure wus reflected ln the number of
trunsuctlons ln the shure, whlch ulmost doubled ln compurlson
to the prevlous flnunclul yeur, wlth z8 per cent of the totul
shures lssued belng trunsucted ln the second hulf of the yeur.
1he 'lE shure hus been u very llquld und robust equlty
lnvestment on the Colombo bourse. vlth u betu of .-z (note
thut the betu wus culculuted on dully 'lE shure und murket
movements us meusured by the ASPl for the = yeur perlod
from c Aprll zcc= to - Murch zcc) for the current flnunclul
yeur, the shure hus dlspluyed u steudfust performunce wlth u
compounded unnuul growth rute of ,.= per cent over the
most recent flve yeurs ln compurlson to the 6.z per cent
growth ln ASPl und z.z per cent growth ln the more llquld
MPl. 1hls ls further lllustruted by the gruph tltled ''lE shure
performunce vs. ASPl und MPl (over = yeurs)'.
Performunce of the lnternutlonul equlty murkets huve
substuntlully lmproved ln the current yeur us ugulnst the prlor
yeur us lnvestor sentlment on rlsky usset clusses lmproved,
wlth expectutlons of u gruduul globul economlc revlvul. 1he
Aslun reglonul murkets outperformed thelr counterpurts ln
North Amerlcu und Lurope. On the buck of the renewed
optlmlsm und lnterest ln Srl Lunku, the CSL und the 'lE shure
outperformed the Sensex lndex of the Mumbul Stock
Lxchunge (8SLSN), the Strults 1lmes lndex of Slngupore
(SC's S1l) und the luulu Lumpur Stock Lxchunge (lLSL)
whlch hud growths of ,, per cent, ,c per cent und o per cent
respectlvely wlthln the yeur under conslderutlon. Eowever,
the compounded unnnuul growth over the pust = yeurs of ,. =
per cent by 'lE wus un underperformunce ugulnst the z.= per
cent compound growth uchleved by the Sensex lndex of the
Mumbul Stock Lxchunge. 1he 'lE shure outperformed both
the lLSL und SC's S1l ln the SouthLust Aslun murkets whlch
uchleved compound growths of 8.6 per cent und 6. per cent
respectlvely, over the pust = yeurs.
Issued share capital
1he totul number of shures ln lssue ut the beglnnlng of the
flnunclul yeur wus 6 mllllon. Lurlng the flnunclul yeur 8.
mllllon shures were lssued through the exerclse of employee
shure optlons (LSOPs), resultlng ln the number of shures ln
lssue lncreuslng to 6 mllllon by the yeur end. ln uddltlon to
the shures ln lssue, there ure z8 mllllon shures equlvulent of
unexerclsed LSOPs us ut - Murch zcc. 1hese ure ellglble for
lmmedlute exerclse us ut the dute of thls report.
SBARL INIORMA1ION
oo
1he bulunce of globul deposltury recelpts (CLRs), ln ordlnury
shure equlvulents, decreused to c.8 mllllon us ut the end of
the yeur from c. mllllon ut the beglnnlng of the yeur due to
converslons.
Dividend
1he dlvldend pollcy of 'lE seeks to ensure u dlvldend puyout
whlch correlutes wlth the growth ln proflts, whllst ensurlng
thut the compuny retulns udequute funds to support
lnvestments, thereby fucllltutlng the creutlon of sustulnuble
shureholder vulue ln the short, medlum und long term.
Lurlng the yeur, the compuny declured, und puld, two lnterlm
dlvldends of Rs. per shure. 1he compuny ulso unnounced u
flnul dlvldend of Rs. per shure bused on the proflts of the
flnunclul yeur zccjc for puyment on c 'une zcc.
Accordlngly, the dlvldend per shure (LPS) ln the current yeur
remulned ut Rs. - per shure.
1he dlvldend puyout rutlo dropped to -8.= per cent [zcc8jc :
oz per cent|, lncreused proflts for the yeur und reduced
number of totul shures us u result of the fully yeur effect of the
shure repurchuse. ln ubsolute terms, the dlvldend puld und
puyuble out of zccjc proflts wlll be Rs. .8o bllllon [zcc8jc:
Rs. .88 bllllon|.
zoojo zoo8jo zoo;jo8
Murket cup (Rs. 8n) |.8 -8.-6 ,6.6
Lnterprlse vulue (Rs. 8n) z.6o o-.-o ,6.,
Murket vulue udded (Rs. 8n) 6a.z (,.o) -z.,6
LvjL8l1LA (tlmes) .| o.- ,.8
Llluted LPS (Rs.) 8.|8 ,.=z 8.cc
PLR (dlluted) z. 8.- o.8
Prlce to book (tlmes) z.| c.8 .,
Prlcejcush eurnlngs (tlmes) <.| 8.c z.=
Llvldend yleld () .6 o., o.8
Llvldend puyout rutlo (per cent) |8.< oz.8 8.c
1SR () 8.o (oo.,) (.c)
Larnings per share
lully dlluted eurnlngs per shure (LPS) for the perlod lncreused
per cent to Rs. 8.-8 [zcc8jc: Rs. ,.=z|. 1hls wus due to the
c per cent lncreuse ln proflt ufter tux uttrlbutuble to the
shureholders. 1he cush LPS lncreused =o per cent to Rs. z.co
[zcc8jc: Rs. ,.8o| ln the current yeur due to the lncreuse ln
cush eurnlngs of =.= per cent compured to the lust yeur.
1otal shareholder return
1he totul shureholder return (1SR) of the shure wus 8.c per
cent us u result of the - per cent prlce uppreclutlon ln the
'lE shure prlce durlng the yeur. ln compurlson, the return on
u 1reusury blll us of c Aprll zcc wus 6.o, per cent.
Market capitalisation and enterprise value
Murket cupltullsutlon of the compuny lncreused by , per
cent to Rs. -.8 bllllon durlng the yeur [zcc8jc: Rs.-8.-6
bllllon|. 1he enterprlse vulue us ut - Murch zcc lncreused 6c
per cent to Rs. z.6c bllllon us u result of the lncreuse ln the
murket cupltullsutlon.
Price earnings ratio
'lE shure wus trudlng ut z. tlmes eurnlngs us ut - Murch
zcc, compured to the prlce eurnlng rutlo (PLR) of 8.- tlmes ln
the correspondlng perlod ln zcc on u trulllng PLR busls. 1hls
wus prlmurlly due to the substuntlul lncreuse ln shure prlce
throughout the flnunclul yeur. 1he murket PLR wus 8.-6 us ut
the end of the yeur under revlew, whlle the PLR for 8SLSN und
lLSL were zo.86 und 8.86 respectlvely. lt ls ulso noteworthy
to hlghllght thut the 'lE shure hus been hlstorlcully trudlng ut
u premlum to the murket.
Price to book
As ut - Murch zcc, the prlce to book rutlo of the Croup wus
z.- tlmes [zcc8jc: c.8 tlmes|. 1he book vulue of the Croup
lncreused by c per cent durlng the yeur under revlew.
Liquidity
Lurlng the yeur, z6 mllllon shures chunged hunds, whlch ls u
conslderuble lncreuse from lust yeur's c mllllon shures
trunsucted. 1he uveruge dully turnover of the 'lE shure wus
Rs. 8z mllllon whlch umounted to zc per cent of the dully totul
murket turnover.
SBARL INIORMA1ION
o=
Distribution and composition of shareholders
1he totul number of shureholders of 'lE decreused to 8,-6=
from the 8,==o seen lust yeur. Out of the totul number of
shureholders, 6 per cent of the shures ln lssue were held by
publlc, whlle 6 per cent of the shures were held by the
dlrectors, executlves und connected purtles, und the bulunce
z= per cent by shureholders holdlng more thun c per cent us
ut - Murch zcc. ln terms of the domlclle of shureholders, =6
per cent of shures were held by resldents und oo per cent wus
held by non resldents compured to o6 per cent held by non
resldents ut the end of lust yeur.
Market information on ordinary shares of the company
zoojo Oa O| Oz O zoo8jo
Share information
Elgh 88.oo 88.cc ,z.cc ==.=c -8.z= z.cc
Low 6z.<o 6o.cc -,.cc z8.=c 6z.=c o.=c
Close 8a.oo 8o.cc ,.=c =.cc -6.,= 6z.,=
Llvldends puld (per shure) |.oo .cc .cc c.cc .cc -.cc
1rading statistics
Number of trunsuctlons |6,|6; 6,c- ,,o8 ,,=c =,-zc =,c6o
Number of shures truded (thousunds) z6,;6 8-,,6= c,=-, =c,co= ,,8z c,=6
of totul shures ln lssue a;.8 -.= o.8 8.z ., ,.
vulue of ull shures truded (Rs.mllllon) a|,a; o,686 -,8z ,,c= ,,,6 8,c,
Averuge dully turnover (Rs.mllllon) 8z z=- zz o -- -o
of totul murket turnover zo.| 6.= z=.o .c z-.8 ,.=
Murket cupltullsutlon (Rs. mllllon) |,8| -,8- c=,cz z,oz 8-,6- -8,-6z
of totul murket cupltullsutlon .a .o .6 .8 c., ,.z
Distribution of shareholders
| March zoo | March zoo
Number of Number of Number of Number of
shareholders shares held shareholders shares held
Less thun or equul to ,ccc a,8| <8.< ,z6,<a< o.z o,6 =8.c ,-8,c, c.z
,cc to c,ccc z,|; z;.; 8,|;,o| .| z,oc= z8. 8,-88,ozc .-
c,cc to cc,ccc 88z o.6 z<,;o,<< a. c.6 z=,zz,z o.
cc,cc to ,ccc,ccc 8; z.z 6<,<|8,;z o.6 8, z.z =,--=,-z6 .,
Over ,ccc,cc 86 .o <,|,8z 8|.8 c . =,,88,zzz 8o.,
Crund totul 8,|6< oo.o 6,a;|,6|z oo.o 8,==o cc.c 6,-=z,6 cc.c
Composition of shareholders
Number of number of Number of number of
shareholders shares held shareholders shares held
Lxecutlve dlrectors und spouses a ;,;z|,<z .z 6 8,o6,6, .o
Nonexecutlve dlrectors und connected purtles a,|6 o.o o,-6 c
Lxecutlves und connected purtles |8 z8,oaa,|; a.< 6 z,-c=,,-o o.8
Publlc Resldent
lnstltutlons <|z z6,a|,|< zo.a ==- z,8o,z .
lndlvlduuls ;,|;; |,<zo,o|; <. ,,6=o z,zz,-- =.c
Publlc NonResldent
lnstltutlons oo 8,z,z6 |z.o 8= z,,z=,-- -o.6
lndlvlduuls zo ;,a<8,z .z 8o 6=,8oc,6z c.,
Clobul deposltury reclepts 8|,;|6 o.z -,oc6 c.z
Shureholders holdlng more thun c z <;,o88,|o z<.a 8c,=,88 -.-
Crund totul 8,|6< 6,a;|,6|z oo.o 8,==o 6,-=z,6 cc.c
o6
1wenty largest shareholders of the company
Number of shares Number of shares
Mr S L Cuptuln z,86,zo a. 8c,=,88 -.z
z 'unus Overseus lund 6a,oz,oo o.<
- 1he Lmerglng Murkets South Aslun lund ,<<,|<8 |.z zc,oz,z=8 -.-
o Leutsche 8unk AC London 6,||,ooo z.6
= Srl Lunku lnsurunce Corporutlon Ltd Cenerul lund <,8oo,ooo z.6 c,8cc,ccc .8
6 Lst. of Mr A A N Le lonseku a,6a,z6 z.a o,6o,z6 z.o
, Aberdeen Clobul Aslu Puclflc Lqulty lund a,88<,8o| z.a o,88=,8c- z.o
8 Arlsulg lndlu lund Llmlted a,a|,<;< z.| o,,8-,o,= z.o
'unus Aspen Serles Overseus Portfollo |,;z;,<oo z.z
c Srl Lunku lnsurunce Corporutlon Ltd Llfe lund |,;6,o8< z.z z8,c6z,c8= o.6
Pulnts & Cenerul lndustrles Llmlted |,a6;,<z z.z z,,,oc c.c
z Cenesls Smuller Compunles z,<a<,66 z.o =,,c8,o= z.6
- Rubber lnvestment 1rust Llmlted AjC no. o,z;,;8 .8 c,,6-,,8 .8
o Lmployees Provldent lund o,|6<,<a8 .; =,=,=o8 .c
= R8C Lexlu lnvestor Servlces 1rust SjA Ldlnburgh Lrugon 1rust PLC ;,a<z,a8 .z ,occ,68 c.c
6 Mr l 8ulendru ;,aao,a<; .z ,,,cz,o=, .-
, Ms L A Cuptuln ;,a||,;8 .z 6,occ,z8 .c
8 Aberdeen Clobul Aslun Smuller Compunles lund ;,oz,| . -,-=z,- c.c
Aberdeen Aslu Puclflc lund 6,8o<,6;z . 6,8c=,6,z .
zc 8utterymurch Clobul Lmerglng Murket lund 6,;|o,8oo .
S C Rutnuyuke |,ao|,o -,zz,,,o,
A L Cunuwurdene |,o|,8|o -,=z,,668
C S A Cunusekeru * NjA ,=zo,=,o
' R l Pelrls a<,;o 8,6z8
L l C Ameruslnghe a,|6 o,-6
1 Lus Nil Nll
S Lnderby Nil Nll
P L Rodrlgo Nil Nll
S S 1lruchelvum Nil Nll
Optlons uvulluble under the
employee shure optlon plun of
'ohn leells Eoldlngs PLC
S C Rutnuyuke ,;;8,o ,,o=,,8
A L Cunuwurdene ,<<a,88z ,=,-,6zo
' R l Pelrls ,|z6,o< ,oc,o,
* etred w.e.j. ,o 1une zoo
Directors' shareholding
Year ended Number of options
| March exercised (million)
, c.cz
8 c.6
c.z,
zccc c.o,
zcc c.cz
zccz .,8
zcc- z.-c
zcco o.c8
zcc= .=-
zcc6 z.co
zcc, -.6,
zcc8 o.c6
zcc c.86
zcc 8.z
* |rst exercsed n |);
Lmployee share options
Lmployee share option plan as at | March zoo
Option
Date of Shares Lxpiry granted Shares* Lxcercised Lapsedj Outstanding Current
grant granted date price ad[usted cancelled price*
PLAN |
Awurd z.c-.zcc= =,=c-,8=c z8.c-.zcc -6.cc ,,o6,8z- ,c,6,o-z 6,c,- z.,z
Awurd z c.co.zcc6 6,6o=,=,= c.co.zc =,.z= c,-c,8= ,z=,c, ,-,-8, ,,,-,o== zc.,o
Awurd - z8.c=.zcc, c,==,c6z z,.c=.zcz o6.cc c,==,c6z z86,zc ,c68,zc ,6,czz o6.cc
PLAN a
Awurd z=.c-.zcc8 =,oc=,o= zo.c-.zc- zc.cc =,oc=,o= z--,-== zz,o,c o,6c,zc zc.cc
PLAN <
Awurd ,.z.zcc 6,z6,6c 6.z.zco 6c.z= 6,z6,6c z6,cz= 6,cc,-= 6c.z=
1otal |a,z||,|z az,|z,6a o,8;z,a |,z6|,68 z;,6,<|z
* Adjusted jor bonus ssues and rgnts ssues
SBARL INIORMA1ION
o,
Year ended | March DPS Dividends
(Rs.) (Rs.'ooo)
= -.=c 8o,z8=
6 z.8c ,,,=86
, -.cc z,c=c
8 o.cc ==,,8-
o.cc =,-o-
zccc -.cc 68,=c
zcc z.cc -=-,z8
zccz z.cc -z,86
zcc- z.cc -oz,zc-
zcco z.=c ,z=,,8-
zcc= -.cc ,cz,,o,
zcc6 -.cc ,,o6c
zcc, -.cc ,oz,-c6
zcc8 =.cc -,,6,-cz
zcc -.cc ,88-,ooz
zcc -.cc ,8o-,6oz
Dividends since <j6
Year ended | March Number of shares
in issue (million)
= zo.=c
6 z8.cc
, -z.cz
8 oc.z
oc.o,
zccc 6.8
zcc 8-.=6
zccz 8=.-=
zcc- 8,.6o
zcco -cc.c8
zcc= --.6-
zcc6 occ.cc
zcc, ==z.o
zcc8 6-=.
zcc 6.-=
zcc 6.o,
Share capital
Bistory of scrip issues and repurchases since <j6
Year ended | March Issue 8asis Number of shares (million) Lxdate
6 8onus :, -.=c zcLec=
, 8onus :, o.cc zc'un,
8 8onus :o 8.cz c'un8
zccc 8onus := 8.c ='un
zccc 8onus :o z.o c='uncc
zcc 8onus z: zz.-6 z,'ulcc
zcco 8onus :o o6.o c'unc-
zcco Prlvute plucement nju zo.cc zOctc-
zcco Rlghts @ Rs. ,=* :, -,.oz c,Novc-
zcc= 8onus :c -c.cz -Muyco
zcc6 8onus := 66.-o Muyc=
zcc, 8onus :, =,.6 -'unc6
zcc, Rlghts @ Rs. oc* := z.c z-'unc,
zcc, 8onus :, ,8.6 -Murc,
zcc Repurchuse :z= z=.=c Octc8
* unadjusted prces
Year ended | March Issued** Convertedj 8alance
Repurchased
o o.=c o.=c
= c.z o.z
6 c.= c.zc o.6,
, c.z, z.8c z.o
8 c.z8 .c6 .-,
c.,= c.6-
zccc c.z6 c.=z c.-6
zcc c.,z c.z- c.8=
zccz c., c.68
zcc- c.6 c.=z
zcco c.- c.6=
zcc= c.c6 c.,
zcc6 c.o c.8=
zcc, c.z c.,
zcc8 c.o .
zcc . c.z c.
zcc c. c.c c.8
* c equvalent to z ordnary snares
** |rst ssued n |)o and subsequently ncreased along wtn bonus
ssues oj ordnary snares
CDR history (in terms of ordinary shares, million)
zccjc
lnterlm flnunclul stutements
1hree months ended -c 'une zcc -c 'uly zcc
Slx months ended -c September zcc z October zcc
Nlne months ended - Lecember zcc z= 'unuury zcc
llrst lnterlm dlvldend puld on -c November zcc
Second lnterlm dlvldend puld on , Aprll zcc
llnul dlvldend proposed to be puld on c 'une zcc
Annuul Report - Muy zcc
-st Annuul Cenerul Meetlng z8 'une zcc
zooj
Interim financial statements
1hree months ended on or before z 1uly zoo
|o 1une zoo
Six months ended on or before 8 November zoo
|o September zoo
Nine months ended on or before z; 1anuary zo
| December zoo
Annual Report zooj on or before |o May zo
|znd Annual Ceneral Meeting za 1une zo
Iinancial calendar zoojo
PLOPLL,
PROCLSSLS AND
COvLRNANCL
o
1BL POWLR OI PLOPLL AND PROCLSSLS
More than [ust a workplace
1he 'ohn leells Croup ls un equul opportunlty employer thut
conslders lts employees us lts greutest usset. Accordlngly, the
Croup ls commltted to hlrlng, developlng und promotlng
lndlvlduuls who possess the requlred competencles, skllls und
experlence ln currylng out the outputs of thelr posltlons und
huve the potentlul for growth. 1he Croup hus pollcles,
processes und systems whlch ensure effectlve recrultment,
development und retentlon.
1he Croup provldes u sufe, secure und conduclve envlronment
for lts employees, ullows freedom of ussoclutlon und collectlve
burgulnlng, prohlblts chlld lubour, forced or compulsory lubour
und uny dlscrlmlnutlon bused on gender, ruce or rellglon, und
promotes workpluces whlch ure free from physlcul, verbul or
sexuul hurussment.
Lmployee reluted processes und systems ure deslgned to
enuble, und fucllltute, hlgh uccesslblllty by uny employee to
every level of munugement. lnformul und formul dlulogue on
mutters relutlng to work, us well us generul lnterest, ure
encouruged. 1he severul chunnels of communlcutlon whlch
huve been estubllshed lnclude the followlng
Munugement ls encouruged to pructlce un 'open door'
pollcy
-6c degree evuluutlons ure done for employees ut
usslstunt vlce presldent level und ubove
An onllne forum ls uvulluble to forwurd new suggestlons
for buslness opportunltles
lnowledge shurlng blogs ure fucllltuted und u 'brlght ldeu'
chunnel ls exlstent
Regulur sklp level meetlngs ut usslstunt munuger und
ubove levels ure held to obtuln contlnuous feedbuck on
the compuny und lts munugement from dlfferent
perspectlves
A dlrect emull uddress to the Chulrmun ls uvulluble to
employees for brlnglng to hls notlce uny trunsgresslon of
Croup vulues when other estubllshed uvenues huve not
ylelded results
An 'lndependent' ombudsperson ls uvulluble to employees
lf they full to obtuln sutlsfuctlon vlu estubllshed chunnels ln
mutters relutlng to the code of conduct lncludlng sexuul
hurussment
Lxlt lntervlews ure held for ull employees of the executlve
level und ubove und ull such reports ure forwurded to the
respectlve Presldents und Lxecutlve vlce Presldents for
comment. Comments ure ulso dlscussed by the Croup
Lxecutlve Commlttee
1he strength of the 1kB family
1he totul stufflng of 'lE for the yeur ls ut c,88=. Stufflng ls
spreud uround dlfferent geogruphles und the functlonul level
spreud ls us shown on the gruph.
1kB staffing strength by region
Sri Lanka Overseas
1runsportutlon o,, 66
Lelsure -,==, ,6z
Property co
Cl&R z,8=6 zz
llnunclul Servlces 6
l1 o-c -88
Other ,zz6
1otal ,6a6 ,z|
Pay for performance
A customlsed 'puy for performunce' scheme bused on the two
plllurs of lndlvlduul performunce rutlng und orgunlsutlonul
performunce rutlng wus lmplemented ln zcc6jc, for ull Croup
employees ut munuger level und ubove und on the plllur of
lndlvlduul performunce rutlng only for ull Croup employees ut
usslstunt munuger und executlve levels. 1he rutlonule for the
excluslon of orgunlsutlonul rutlng ut usslstunt munuger und
executlve levels wus thut lndlvlduuls ut those levels hud llttle
dlrect lnfluence on the bottom llne of thelr orgunlsutlons.
After three yeurs of lts operutlon, the generul employee
consensus ls thut lt hus led to lncreused productlvlty und
better performunce, greuter employee recognltlon und,
consequently, rewurd und the ullgnment of employee,
munugement und stukeholder lnterests. Orgunlsutlonul
rutlngs ure determlned uslng the unnuul plun us the yurdstlck
wlth udjustments mude, us relevunt, for the orgunlsutlon's
performunce relutlve to lts peers.
1he puy for performunce system hus, us lts bedrock, the
performunce munugement system (PMS) whlch the Croup hus
been perfectlng over the lust few yeurs und the detulled
remunerutlon surveys whlch the Croup conducts on u regulur
busls. Addltlonully, the Croup ulso enguges ln ongolng revlews
of remunerutlon obtulned vlu the purtlclputlon ln other
corporute surveys whlch ure relevunt to the Croup.
key principles
1he Croup belleves ln u Compensutlon Pollcy bused on equul
puy for equul roles, lrrespectlve of gender.
1he key prlnclples underlylng the Croup's remunerutlon pollcy
ure
All usslstunt vlce presldent (AvP) und ubove roles ucross
the Croup huve been bunded by un lndependent thlrd
=c
purty on the busls of the relutlve worth of jobs, thereby
enubllng lnternul equlty
llxed compensutlon ls set ut levels thut ure competltlve to
enuble the recrultment und the retentlon of hlgh cullbre
executlves ln the ldentlfled cureer levelsjjob bunds us
gulded by the medlun, 6=th percentlle und ,=th percentlle
of the best compurutor set of compunles (from Srl Lunku
und the reglon, where relevunt)
Compensutlon, comprlslng of flxed (buse) puyments, short
term lncentlves und long term lncentlves ure tled to
lndlvlduul performunce ut ull levels und orgunlsutlonul
performunce ut munuger levels und ubove
Performunce ls meusured unnuully on well deflned
lndlvlduul und orgunlsutlon objectlves und metrlcs whlch
reflect, und ure posltlvely correluted to, the compuny's
objectlves, thereby ullgnlng employee, munugement und
stukeholder lnterests. Orgunlsutlonul rutlngs ure
uddltlonully modlfled to reflect murket condltlons vlu u set
of preugreed peer compurutors
1he more senlor the level of munugement, the hlgher the
proportlon of the lncentlve component, und thereby lower
the proportlon of the flxed (buse) component ln the totul
turget compensutlon
As the declslon lnfluenclng cupublllty of u role lncreuses,
the lndlvlduul performunce holds lesser welghtuge thun
the orgunlsutlonul performunce ln determlnlng totul
compensutlon und lncentlves
Long term lncentlves huve, up to now, tuken the form of
Lmployee Shure Optlons (LSOP). 1hey huve been offered
to employees, ln deflned cureer levels, bused on pre
determlned crlterlu whlch ure unlformly upplled ucross the
ellglble levels. Such optlons were offered ut murket prlces
prevulllng on the dute of the offer. 1he lust LSOP uwurd
wus mude on , Lecember zcc
All remunerutlon pollcles ure ultlmutely bused on
conslderutlons of uffordublllty und sustulnublllty
Cleur communlcutlon, und the trunspurency, of current
und proposed pollcles ure deemed u must
1he process mentloned ubove ls revlewed regulurly for uny
short comlngs und steps ure tuken to uddress uny lssues
ldentlfled.
Lmployee involvement and empowerment
1op munugement, und other senlor stuff, ure munduted to
lnvolve, us upproprlute, ull levels of stuff ln formulutlng gouls,
strutegles und pluns. Leclslon rlghts ure deflned for euch level
ln order to lnculcute u sense of ownershlp, reduce bureuucrucy
und speedup the declslonmuklng. Annuul und flve yeur pluns
ure formuluted on u bottomup busls uslng futurlstlc scenurlos
developed by the CLC und CMCs und mucro economlc fuctors
developed by the corporute centre.
Lmployee communication
vhllst greut strldes huve been tuken ln lmprovlng both the
formul und lnformul communlcutlon wlthln the Croup, lt ls yet
to tuke the form, und be ln the extent, thut ls deslred. 1he
lmportunce of communlcutlon, topdown, bottomup und
luterul ln gulnlng employee commltment to orgunlsutlonul
gouls hus been conveyed, extenslvely, und lntenslvely,
through vurlous communlques lssued by the ChulrmunCLO
und other senlor munugers. 1he tone from the top ln thls
respect hus been, und ls, unrelentlng. 1he Croup hus us one of
lts lmmedlute objectlves the freelng of employee mlnd sets
from the -c yeur old shuckles of the ethnlc confllct und be
more lnnovutlve ln uddresslng the customer needs ln u new
Srl Lunku.
Skip level meetings
As ln the prevlous yeur, sklplevel meetlngs were, once uguln,
conducted throughout the Croup compunles ln zccjc for
usslstunt munuger und ubove levels. vhllst thls enubled
employees to lnteruct, und dlscuss, wlth superlors who ure ut
u level hlgher thun thelr own lmmedlute supervlsor, the
slncerlty, und the openness, of the process resulted ln the
subject employees purtlclputlng ln the meetlngs wlth more
enthuslusm und purpose. 1hls enubled to huve u flrsthund
feedbuck on the usplrutlons of ull levels of employees. 1he
feedbuck so obtulned wlll be used ln structurlng new
employee processes undjor revlslng exlstlng employee
processes.
Young forum
vlth u vlew to broudenlng the top level communlcutlon wlth
the rest of the Croup employees, young foru conslstlng of the
, youngest ludles und gentlemen ut vurlous levels wlthln the
Croup were lntroduced sturtlng thls yeur. 1he goul of thls
forum ls for these young representutlves to meet wlth the
Chulrmun, Leputy Chulrmun und the Croup llnunce Llrector, ln
un lnformul settlng, to dlscuss both hurd und soft lssues
relutlng to the Croup operutlons. One suggestlon mude by one
such Croup wus to estubllsh un onllne forum, through the 'lE
lntrunet, whlch would enuble the employees to shure
knowledge not only on 'work' mutters but ulso on 'llfe'
mutters such us heulth, weulth und other lmportunt toplcs thut
could enhunce thelr llves, outslde of work. 1hls lutest uddltlon
to the communlcutlon tools ut 'lE ulso hus been productlve ln
gulnlng trust umongst the employees thut thelr suggestlons
for new buslnesses or process lmprovements ure heurd by the
senlor munugement us they too contrlbute to the forum.
Ombudsperson
ln order to further strengthen our governunce structures und
encourugejfucllltute ull employees to llve by our vulues, un
ombudsperson wus uppolnted ut 'lE ln zccjc. Under thls,
un employee or u group of employees cun muke complulnts,
wlth confldentlullty ussured us requlred, of ulleged vlolutlons
of the publlshed Code of Conduct when thut employee or
group of employees feel thut un ulleged vlolutlon hus not been
uddressed sutlsfuctorlly uslng the uvullublejexlstlng
procedures und processes. More detulls of the functlons of
the ombudsperson ure detulled ln the Corporute Covernunce
sectlon of the report.
Corporate communications
1he corporute communlcutlons (Corp Coms) teum pluys un
lntegrul role ln keeplng ull employees lnformed of Croup
huppenlngs und mllestones. One of lts muln ulms ls to enhunce
und sufeguurd the ''ohn leells' corporute brund. Accordlngly,
lt enguges ln uctlvltles to bulld the brund umongst lts
employees, potentlul employees, und the publlc ln generul.
1he muln communlcutlon chunnels used ure the Croup's
lntrunet myPortul, the quurterly newsletter 'l Puwuth, the
corporute webslte, the medlu, und purtlclputlon ut brund
bulldlng events. Corp Coms works very closely wlth the 'ohn
1BL POWLR OI PLOPLL AND PROCLSSLS
=
leells Soclul Responslblllty loundutlon to creute uwureness,
und secure the voluntury purtlclputlon, of Croup employees,
und other stukeholders ln progrummes whlch promlse
sustulnuble development.
1he support functions at the centre
1he llnunce und Accountlng, lnternul Audlt, Rlsk
Munugement, lnsurunce, Eumun Resource, Corporute
llnunce, 1reusury, New 8uslnes Levelopment, Croup
lnltlutlves, Sustulnuble Levelopment, Legul und lnformutlon
1echnology ure the 'Centre' functlons whlch recommend, und
drlve pollcy, ln respect of the stuted dlsclpllnes ln the Croup.
1hey ulso pluy u key role ln udvlslng buslnesses ln mutters such
us project evuluutlons, strutegy formulutlon, procurement,
etceteru. 1he stuff ln these functlons ure uctlve ln vurlous
technlcul commlttees, ut u nutlonul level, und keep ubreust of
emerglng lssues, regulutlons und lndustry best pructlces both
nutlonully und globully.
'SAP' at work and the continous process improvement
'ohn leells Croup emburked on u very cruclul but declslve
lnltlutlve ln zcc-, to brlng the entlre Croup on un lntegruted,
common uppllcutlon plutform to enuble lts umbltlous growth.
'lE's cholce of softwure for thls tusk wus System Anulysls und
Progrum Levelopment (SAP) und lt ls now used extenslvely ln
every uspect of the Croup's operutlons, be lt ln flnunce und
uccountlng, muterlul munugement, sules und dlstrlbutlon,
productlon plunnlng, plunt mulntenunce, humun cupltul,
compensutlon und beneflts, buslness performunce trucklng,
lnvestments und employee self servlces, just to nume u few.
1he Croup wus uble to estubllsh u 'Shured Servlces' functlon
successfully ucross the Croup und leveruge sume us un udded
vulue drlver ln uddltlon to other key buslness beneflts such us
lmproved ullgnment of strutegles und operutlons
lmprove productlvlty und lnslght
Reduce costs through lncreused flexlblllty
Support chunglng lndustry requlrements
Reduce rlsk
lmprove flnunclul munugement und corporute
Optlmlse l1 spendlng
Retuln top performers
Provlde lmmedlute uccess to enterprlse lnformutlon
ln uddltlon, ufter un lnltlul study of the flnunce processes und
functlons to ldentlfy ureus for lmprovements wlthln the Croup
through the SAPjSO (Surbunes Oxley) exerclse, the followlng
chunges were mude
Segmented the 'core' flnunce functlon und the perlpherul
flnunce functlons of the Croup und the number of stuff
lnvolved ln every detulled uctlvlty wlthln euch segment
Segreguted the work done ut u buslness unlt level, ut the
centre und ut the shured servlces
ldentlfled functlons thut could be stundurdlsed
throughout the Croup
Letermlned whether phuse one of 'shured servlces' und
enhunced lnternul control through SAPjSurbunes Oxley
hud been completed
ldentlfled uddltlonul ureus of process lmprovements,
efflclencles und productlvlty gulns
1he Croup strongly belleves thut process revlew und
lmprovement ure lmperutlve ln u rupldly chunglngjevolvlng
buslness world und thut lt needs to be u contlnuous process ln
order to uchleve muxlmum efflclency.
=z
8OARD OI
DIRLC1ORS
Susantha Ratnayake
ChulrmunCLO
Susunthu Rutnuyuke wus uppolnted us the Chulrmun und CLO
of 'ohn leells Eoldlngs PLC ln 'unuury zcc6 und hus served on
the 'lE bourd slnce zj-. Ee ls ulso the Chulrmun of muny
of the llsted und unllsted compunles wlthln the Croup. Ee ls u
councll member of the Lmployers' lederutlon of Ceylon,
serves on vurlous clusters of the Nutlonul Councll of Lconomlc
Levelopment (NCLL) und ls the vlce Chulrmun of the Ceylon
Chumber of Commerce us well us the Chulrmun of the Srl
Lunku 1eu 8ourd. Ee hus over -z yeurs of munugement
experlence, ull of whlch ls wlthln the 'ohn leells Croup.
A[it Cunewardene
Leputy Chulrmun
Ajlt Cunewurdene ls the Leputy Chulrmun of 'ohn leells
Eoldlngs PLC und hus been u member of the bourd for over ,
yeurs. Ee ls u Llrector of muny compunles ln the 'ohn leells
Croup und ls the Chulrmun of Nutlons 1rust 8unk PLC und
Unlon Assurunce PLC. Ee ls u member of the bourd of Nunco
(Pvt) Ltd, u compuny estubllshed for the development of
Nunotechnology ln Srl Lunku under the uusplces of the
Mlnlstry of Sclence und 1echnology. Ee hus ulso served us the
Chulrmun of the Colombo Stock Lxchunge. Ee wus u member
of the 8ourd of the Srl Lunku 1ourlsm Promotlon 8ureuu. Ajlt
hus u degree ln Lconomlcs und brlngs over z8 yeurs of
munugement experlence.
Ronnie Peiris
Croup llnunce Llrector
Appolnted to the bourd durlng zcczjc-, Ronnle Pelrls hus
overull responslblllty for Croup llnunce lncludlng 1reusury,
1uxutlon, Corporute llnunce, Croup lnltlutlves, Shured
Servlces und the lnformutlon 1echnology functlons ut the
centre. Prevlously, munuglng dlrector of Anglo Amerlcun
Corporutlon (Centrul Afrlcu) Llmlted und LCO member of
lonkolu Copper Mlnes PLC, both ln 2umblu, Ronnle hus served
on muny bourds overseus. Ronnle hus over -8 yeurs flnunce
und generul munugement experlence ln Srl Lunku und ubroud.
Ee ls u lellow of the Churtered lnstltute of Munugement
Accountunts, Ul, Assoclutlon of Churtered Certlfled
Accountunts, Ul, und the Soclety of Certlfled Munugement
Accountunts, Srl Lunku, und holds un M8A from the Unlverslty
of Cupe 1own, South Afrlcu. Ee ls u member of the commlttee
of the Ceylon Chumber of Commerce, Chulrmun of lts tuxutlon
sub commlttee und ulso serves on lts economlc, flscul und
pollcy plunnlng sub commlttee. Ee ls currently the vlce
Presldent of the lnstltute of Llrectors.
Iranklyn Amerasinghe
* Llrector
Appolnted to the bourd durlng jcc, lrunklyn Ameruslnghe
ls the former CLO und Llrector Cenerul of the Lmployers'
lederutlon of Ceylon. Ee wus thereufter uttuched to the lLO us
u senlor speclullst ln the soclul dlulogue sector ln churge of
Lmployers Orgunlsutlons ln Lust Aslu up to October zccz. A
buchelor of luw und u luwyer by professlon, he ls currently u
consultunt und trulner ln soclul dlulogue, humun resource
munugement, corporute soclul responslblllty und lndustrlul
relutlons, both ln Srl Lunku und ubroud. Ee hus ulso uuthored
books on u wlde runge of subjects und publlshed pupers ln
some lnternutlonul und locul journuls.
Ee ls u founder trustee of the Assoclutlon for Llulogue &
Confllct Resolutlon. Ee wus ulso one of the founder dlrectors
of the Skllls Levelopment lund.
1arun Das
** Llrector
1urun Lus hus spent hls entlre worklng cureer ln lndustry
ussoclutlons, sturtlng ln November 6- wlth the predecessor
body of Confederutlon of lndlun lndustry (Cll) und wus the
Llrector Cenerul und Chlef Lxecutlve slnce Aprll 6, tlll Muy
zcco und Chlef Mentor from 'une zcco - October zcc. Ee
ls currently Chulrmun of Cll's USA Councll und u permunent
lnvltee to the Cll Nutlonul Councll und Presldents Councll, the
two upex bodles of Cll.
Ee ls u Llfe1lme 1rustee of 1he Aspen lnstltute, USA: Member,
8ourd of Covernors, Lust vest Centre, USA: Member,
=-
lnternutlonul Councll, 1he Aslu Soclety, USA: CoChulr of the
lndoUS Struteglc Llulogue (1ruck ll) und of lndoUS'upun
Struteglc Llulogue (1ruck ll). Ee ls ulso u member of the lndlu
Slngupore Struteglc Llulogue (1ruck ll).
1urun ls the Munuglng 1rustee of lndlun 8uslness 1rust for
ElvjAlLS: Presldent, Aspen lnstltute lndlu: vlce Presldent,
vorld vlde lundlndlu: NonLxecutlve Chulrmun, Euldlu
Petrochemlculs Ltd, member of the 8ourd of ClvL lndlu
loundutlon: member, 8ourd of 1rustees, Publlc lnterest
loundutlon, lndlu: member, 8ourd of Covernors, Nutlonul
Councll of Applled Lconomlc Reseurch (NCALR) und member,
Covernlng Councll, Munugement Levelopment lnstltute,
lndlu: und u member of the 8ourd of Llrectors of vest 8engul
lndustrlul Levelopment Corporutlon (v8lLC).
Ee ls ulso on the lnternutlonul Advlsory 8ourd of ACL
lnsurunce, USA: member, lndluAdvlsory 8ourd of vOl1E
(Cermuny): 'C8 (Ul) und Mlcrosoft Corporutlon (USA).
Steven Lnderby
** Llrector
Appolnted to the bourd ln zcc=jc6, Steven Lnderby ls
currently bused ln lndlu where he ls u purtner ln the leudlng
emerglng murkets prlvute equlty lnvestor, Actls. Els other
dlrectorshlps lnclude Swuruj Muzdu, Avtec, 1emu lndlu,
Eulonlx, Ceylon Oxygen, MlL und Actls Advlsers. Steven holds
u 8Sc (Eons) ln economlcs und uccountlng from the Oueens
Unlverslty of 8elfust und ls u member of the Churtered
lnstltute of Munugement Accountunts, Ul.
Deshamanya Deva Rodrigo
** Llrector
Appolnted to the bourd ln 'uly zcc6, Levu Rodrlgo,
u churtered uccountunt, hud u cureer wlth the
lnternutlonul uccountlng und consultlng orgunlsutlon
PrlcewuterhouseCoopers, jolnlng the flrm ln Lust Afrlcu ln ,o
und servlng ln lts London offlces ln 8c. Ee wus u lounder
Purtner when PrlcewuterhouseCoopers estubllshed lts Srl
Lunkun flrm ln 8, und held the posltlon of senlor purtner
from z to -c 'une zcc6, when he retlred from the flrm. Ee
wus the chulrmun of the Ceylon Chumber of Commerce. Ee
hus prevlously held publlc offlce us u dlrector of People's 8unk
und us u member of the 1elecommunlcutlon Regulutory
Commlsslon. Levu wus ulso u member of the Monetury 8ourd
of the Centrul 8unk of Srl Lunku und u member of the Nutlonul
Councll for Admlnlstrutlon.
Ee ulso serves us the Chulrmun Audlt Commlttee und Non
Lxecutlve Llrector of Ceylon 1obucco Co., PLC und Chevron
Lubrlcunts Lunku PLC.
Sithie 1iruchelvam
** Llrector
Appolnted to the bourd ln 'unuury zcc,, Slthle 1lruchelvum, u
luwyer of the Supreme Court of Ceylon, speclullses ln
corporute luw, lntellectuul property luw und lubour luw und ls
u notuble humun rlghts cumpulgner. She obtulned her LL8
from the Unlverslty of Ceylon ln 66, und wus udmltted to the
Supreme Court us Advocute ln 68. She ls u loundlng Purtner
of 1lruchelvum Assoclutes. She currently serves on severul
bourds, umong them belng Centrul Corporute & Consultuncy
Servlces (Pvt.) Llmlted, Nudesun Centre for Eumun Rlghts und
South Asluns for Eumun Rlghts, u reglonul orgunlsutlon wlth
lts secreturlut ln Colombo. Slthle ls u member of the
loundutlons for Peuce Network, u worldwlde network of
communlty foundutlons worklng on peuce und reconclllutlon
ln fructured socletles. She hus ulso completed u progrumme
on corporute phllunthropy ut the Rockefeller loundutlon,
progrumme for phllunthropy ln New York, USA ln zcccjc.
* Senor ndependent nonexecutve
** lndependent nonexecutve
=o
Dilani Alagaratnam
Presldent
Lllunl Alugurutnum hus overull responslblllty for the Croup
Eumun Resources, Legul und Secreturlul und Corporute
Communlcutlons functlons of 'ohn leells Eoldlngs PLC. A
luwyer by professlon, she hus been wlth the Croup for 8 yeurs
und ls u luw gruduute und u holder of u Musters Legree ln Luw.
She ls u member of the steerlng commlttee on humun
resources und educutlon of the Ceylon Chumber of Commerce,
und u member of the nutlonul lubour udvlsory commlttee.
krishan 8alendra
Presldent
lrlshun 8ulendru hus responslblllty for the Retull sector, 'ohn
leells Stock 8rokers und the Corporute llnunce & Strutegy
functlon of the Croup. Ee sturted hls professlonul cureer ut
U8S vurburg, Eong long, ln lnvestment bunklng, focuslng
prlmurlly on equlty cupltul murkets. After u four yeur stlnt ln
Eong long, he contlnued hls cureer ln corporute flnunce ut
Altken Spence & Co. PLC, Srl Lunku prlor to jolnlng 'lE.
lrlshun holds u luw degree (LL8) from the Unlverslty of
London und un M8A from lNSLAL. Ee ls u member of the
bourd of the Colombo Stock Lxchunge.
Romesh David
Presldent
Romesh Luvld hus been wlth the Croup for -c yeurs durlng
whlch he hus served ln the Lelsure, Lomestlc & lnternutlonul
1rude, l1 und 1runsportutlon sectors of the Croup. Ee now hus
overull responslblllty for the 1runsportutlon lndustry group.
Ee ls u member of the Nutlonul Councll for Lconomlc
Levelopment (trunsport cluster), u member of the economlc
lnfrustructure subcommlttee of the Ceylon Chumber of
Commerce und member of the Churtered lnstltute of Loglstlcs
und 1runsport. Romesh ls u pust chulrmun of the Srl Lunku
lrelght lorwurders' Assoclutlon und the Councll for 8uslness
wlth 8rltuln.
San[eeva Iernando
Presldent
Sunjeevu lernundo hus overull responslblllty for the l1 lndustry
group. Prlor to thls he wus Eeud of the 1runsportutlon sector.
Ee hus over z- yeurs of munugement experlence, 6 of whlch
huve been wlth the Croup ln dlverse buslnesses und cupucltles.
A prlnter by professlon, Sunjeevu quullfled from the London
School of Prlntlng und ls u member of the London lnstltute of
Prlntlng. Ee jolned 'lE ln - to heud the Croup's prlntlng
und puckuglng buslness und wus the CLO of Lunku Murlne
Servlces from the tlme of lts ucqulsltlon ln zccz untll zcc=.
1itendra Cunaratne
Presldent
'ltendru Cunurutne ls responslble for the Consumer loods
sector. Prlor to hls uppolntment us Presldent, he overlooked
the Pluntutlons und Cl&R Munufucturlng sectors. Els z yeurs
of munugement experlence ln the Croup ulso covers Lelsure
und Property. 'ltendru holds u dlplomu ln murketlng und
serves us u member of the udvlsory commlttee on consumer
uffulrs of the Ceylon Chumber of Commerce.
Suresh Ra[endra
Presldent
Suresh Rujendru hus overull responslblllty for the Property
lndustry group. Ee hus over 8 yeurs of experlence ln the flelds
of flnunce, truvel und tourlsm, und buslness development
ucqulred both ln Srl Lunku und overseus. Prlor to jolnlng the
Croup, he wus the heud of commerclul und buslness
development for NRMA Motorlng & Servlces ln Sydney,
Austrullu. Suresh ls u lellow of the Churtered lnstltute of
Munugement Accountunts, Ul.
Note: 1ne croup Lxecutve commttee s currently a member team
ncludng tne tnree executve drectors and tne above members
CROUP
LXLCU1IvL
COMMI11LL
==
Su[iva Dewara[a
Lxecutlve vlce Presldent
Sujlvu Lewuruju heuds the l1 sector. Slnce pusslng out us u
Churtered Munugement Accountunt ln London ln 8c, he
worked ln corporute strutegy ut u dlverslfled conglomerute
und ln MlS for u Mlddle Lustern government. Movlng to the
USA ln 8,, he reud for un M8A from the Unlverslty of
Plttsburgh, Pennsylvunlu, eurnlng u pluce on the Leun's Llst.
Slnce then, he hus held vurled generul munugement posltlons.
Ee ls u lellow of ClMA, Ul und un Assoclute member of the
Churtered lnstltute of 8unkers, London. Sujlvu wus founder
Secretury of the Consumer Llectronlcs und Lomestlc
Appllunces Assoclutlon ln = und the Srl Lunku Netherlunds
Assoclutlon. Ee served on the commlttee of the Ceylon
Chumber of Commerce ln ,j8 und on the udvlsory punel
on lC1 export to the Mlnlster of Lnterprlse Levelopment ln
zcc,jc8. Ee wus u foundlng bourd member of the Lunku
Softwure loundutlon us well us SLASSCOM (Srl Lunku
Assoclutlon of Softwure und Servlces Co's), of whlch he ls
currently vlce Presldent.
Roshanie 1ayasunderaMoraes
Roshunle 'uyusunderuMorues, Eeud of the Retull sector, hus
been wlth the Croup slnce . She wus wlth the Alrllnes
sector of the 1runsportutlon lndustry group, before belng
uppolnted us heud of the Croup's supermurket buslness ln
November zcc-. A holder of u dlplomu ln murketlng from the
Churtered lnstltute of Murketlng (ClM), Ul, Roshunle ulso
holds un M8A from the PostCruduute lnstltute of
Munugement of the Unlverslty of Srl 'uyuwurdenepuru,
Srl Lunku.
San[eewa 1ayaweera
Sunjeewu 'uyuweeru, Chlef llnunclul Offlcer for the Consumer
loods & Retull lndustry group, hus been wlth the Croup for ,
yeurs, durlng whlch he served ln the Resort Eotels sector of
the Lelsure lndustry group und wus the Sector llnunclul
Controller for Resort Eotels from 8 to zcc=. Prlor to jolnlng
the Croup, Sunjeewu wus bused ln the Unlted llngdom und
worked for severul yeurs us un uudlt munuger.
1ayantissa kehelpannala
'uyuntlssu lehelpunnulu, Sector Eeud Resort Eotels, hus over
z8 yeurs of experlence ln the lelsure lndustry both ln
hotellerlng und lnbound tourlsm. Ee ls currently the Presldent
of the Srl LunkuMuldlves 8lluterul 8uslness Councll whlch ls
under the uegls of the Ceylon Chumber of Commerce, vlce
Chulrmun Eotels und 1ourlsm employers group of the
Lmployers' lederutlon of Ceylon und u Member of the vuges
8ourd for the hotel & cuterlng trude.
ln uddltlon 'uyuntlssu ls ulso u dlrector of the Rulnforest
Lcolodge whlch ls un lndustry drlven hotel development
project to cuter und populurlse eco tourlsm ln Srl Lunku.
vasantha Leelananda
vusunthu Leelunundu ls Eeud of the Lestlnutlon Munugement
sector und counts over - yeurs ln the lelsure lndustry wlth the
'ohn leells Croup. Ee served us the Munuglng Llrector of
vulkers 1ours from , to zcc= und overlooks the truvel
operutlons ln Muldlves, lndlu und Srl Lunku. vusunthu holds un
M8A from the Unlverslty of Lelcester. Ee ls u pust Presldent of
the Srl Lunku Assoclutlon of lnbound 1our Operutors (SLAl1O)
und served us u bourd member of the Srl Lunku Conventlon
8ureuu from zcc- to zcc,. Ee ls u bourd member of the Srl
Lunku lnstltute of 1ourlsm & Eotel Munugement und u vlce
Chulrmun of the Responslble 1ourlsm Purtnershlp whlch ls
uffllluted to the 1ruvel loundutlon Ul.
Chandrika Perera
Chundrlku Pereru wus uppolnted us the Chlef llnunclul Offlcer
of the Lelsure lndustry group ln Murch zcc=. She hus been
wlth the Croup for z, yeurs. She held the posltlon of Croup
llnunclul Controller from to zcc=. A lellow of the
lnstltute of Churtered Accountunts of Srl Lunku und the
Soclety of Certlfled Munugement Accountunts, Srl Lunku, she
holds un M8A (flnunce) from the Unlverslty of Southern
Oueenslund. Chundrlku serves us u munugement commlttee
member of the flnunclul reportlng fuculty of lCASL, und ls u
member of the steerlng commlttee on lncome tuxes.
CROUP
OPLRA1INC
COMMI11LL
=6
Mano Ra[akariar
Muno Rujukurlur, hus been the Croup llnunclul Controller slnce
Aprll zcc=. Ee hus been wlth the Croup for over o yeurs ln
muny cupucltles lncludlng servlng us the Sector llnunclul
Controller of the Pluntutlons sector und heudlng the Shured
Servlces lmplementutlon wlthln the Croup. Ee hus over zz
yeurs of experlence ln uudlt, flnunce und generul munugement
ucqulred both ln Srl Lunku und overseus. Muno ls u lellow
member of the lnstltute of Churtered Accountunts of Srl Lunku
(lCASL) und the Churtered lnstltute of Munugement
Accountunts, Ul. Ee currently serves us u commlttee member
of the Urgent lssues 1usk lorce (Ul1l) und of the flnunclul
reportlng fuculty of the lCASL.
Waruna Ra[apakse
vurunu Rujupukse, Eeud of New 8uslness Levelopment und
Croup lnltlutlves, hus over z- yeurs of experlence ln Srl Lunku
und ln the Ul, prlmurlly ln munugement consultuncy und
project flnunce. Prlor to jolnlng the Croup ln zccz, he worked
for the government ut the 8ureuu of lnfrustructure
lnvestment, lnformutlcs lnternutlonul Ltd (Ul) und ut Lrnst &
Young. vurunu ls u lellow member of the Churtered lnstltute
of Munugement Accountunts, Ul, und un Assoclute member
of the lnstltute of Churtered Accountunts of Srl Lunku. Ee ulso
holds un M8A from Clty UnlversltyCuss 8uslness School,
London, Ul. Ee ls u member of the lnfrustructure steerlng
commlttee of the Ceylon Chumber of Commerce und u
member of the Srl Lunku Covernunce 8ourd of the Churtered
lnstltute of Munugement Accountunts of Ul.
Lallith Ramanayake
Lulllth Rumunuyuke, Eeud of the Pluntutlon Servlces sector
und heud of the CSR lnltlutlve of 'lE, hus been wlth the Croup
for over -8 yeurs. Ee hus ulso served us the Eeud of the
1runsportutlon sector durlng the perlod from zcc, to zcc. Ee
ls u member of the Churtered lnstltute of Murketlng, Ul wlth
the churtered murketer stutus und holds un M8A from the
Postgruduute lnstltute of Munugement, Unlverslty of Srl
'uyewurdenepuru. Lulllth hus been the chulrmun of the
Colombo 8rokers' Assoclutlon, u dlrector of the Srl Lunku 1eu
8ourd, Leputy Chulrmun of the 1eu Assoclutlon of Srl Lunku,
und u member of the pluntutlonjteu cluster of the Nutlonul
Councll for Lconomlc Levelopment, where he chulred the sub
commlttee whlch developed the nutlonul c yeur plun for the
teu lndustry. Ee hus served on the executlve commlttee of the
Ceylon Chumber of Commerce.
Ramesh Shanmuganathan
Rumesh Shunmugunuthun ls the Croup's Chlef lnformutlon
Offlcer und member of the Croup Munugement Commlttee for
lnformutlon 1echnology lndustry group und hus over , yeurs
of experlence ln the lC1 lndustry both ln Srl Lunku und the
USA, wlth the lust c yeurs ln Clevel munugement.
Prlor to thls he hus served ln the Croup's l1 sector us the CLO
of leells 8uslness Systems Llmlted slnce zcc und Eeud of
StrutegyjNew 8uslness lnltlutlves of 'ohn leells Computer
Servlces Ltd slnce zcco untll he ussumed dutles us the Croup's
ClO. Rumesh ls u Euyeslulbrlght Scholur und holds to hls
credlt u MSc (lnformutlon technology & computer sclence)
wlth phl kuppu phl honours from Rochester lnstltute of
1echnology, M8A (generul) from Postgruduute lnstltute of
Munugement, Unlverslty of Srl 'uyewurdenepuru, 8Sc.Lng.
(electronlcs & telecommunlcutlons) wlth flrst cluss honours
from Unlverslty of Morutuwu. Ee ls u churtered englneer,
churtered l1 professlonul und u lellow of the 8rltlsh Computer
Soclety. Ee hus uctlve membershlps ln severul other
professlonul lnstltutlons und ls u vlsltlng fuculty member for
severul postgruduute progrums. Ee ls ulso the Chulr of the
SLASSCOM ClO Councll.
Devika Weerasinghe
Levlku veeruslnghe, Chlef llnunclul Offlcer of the
1runsportutlon lndustry group prevlously held the posltlon of
Sector llnunclul Controller of the 1runsportutlon sector. She
ulso served us the Sector llnunclul Controller of the Alrllnes
S8U of the 1runsportutlon sector durlng the perlod 8zcco.
An Assoclute member of the Churtered lnstltute of
Munugement AccountuntsUl, Levlku ulso holds u buchelors
degree ln 8uslness Admlnlstrutlon, from the Unlverslty of
Srl 'uyuwurdenepuru.
Note: 1ne croup Cperatng commttee s currently a zo member
team consstng oj tne cLc and tne above members
Our Corporute Covernunce
phllosophy, founded on u culture of
performunce wlthln u frumework of conformunce
und compllunce, ''sets the puce'' to succeed ln toduy's
competltlve buslness envlrons, ln u munner thut ls sustulnuble
und equltuble to ull our stukeholders. 1hls phllosophy hus been
lnstltutlonullsed ut ull levels ln the Croup through u strong set
of corporute vulues und u wrltten code of conduct thut ull
employees, senlor munugement und the 8ourd of Llrectors
ure requlred to follow ln the performunce of thelr offlclul
dutles und ln other sltuutlons thut could uffect the Croup's
lmuge. Llrectors und employees ut ull levels ure expected to
dlspluy ethlcul und trunspurent behuvlour through thelr
communlcutlon und role modellng.
Code of conduct
1he four buslc prlnclples of the 'ohn leells Eoldlngs ('lE)
code of conduct und ethlcs, ure the
ulleglunce to the compuny und the Croup
compllunce wlth rules und regulutlons upplylng ln the
terrltorles thut the Croup operutes ln
conduct of buslness ln un ethlcul munner ut ull tlmes und ln
keeplng wlth ucceptuble buslness pructlces
exerclse of professlonullsm und lntegrlty ln ull buslness
und 'publlc' personul trunsuctlons
1he Chulrmun of the 8ourd ufflrms thut there hus not been uny
muterlul vlolutlon of uny of the provlslons of the
uforementloned code of conduct. ln the lnstunces where
vlolutlons dld tuke pluce, they were lnvestlguted und hundled
through the compuny's well estubllshed procedures.
1he 'lE corporute governunce
phllosophy pructlced ls ln full
compllunce wlth the followlng und
where necessury, uny devlutlons us
ullowed by the relevunt rules und
regulutlons huve been explulned.
Compunles Act No. , of zcc,
Llstlng rules (revlsed 'unuury zcc) of the
Colombo Stock Lxchunge (CSL) see check llst ut the
end of the sectlon
1he recommendutlons of the Comblned Code of zcc8 to
the extent thut they ure pructlcuble ln the context of the
nuture of our dlverse buslnesses und thelr rlsk proflles
All provlslons of the Code of Covernunce of the lnstltute of
Churtered Accountunts of Srl Lunku
1kB corporate governance framework
'lE ls commltted to the hlghest stundurds of buslness
lntegrlty, ethlcul vulues und professlonullsm ln ull lts uctlvltles
towurds rewurdlng ull lts stukeholders wlth greuter creutlon of
vulue, yeuronyeur. Our governunce frumework whlch hus
been communlcuted to ull levels of munugement und stuff ln
lndlvlduul buslnesses und functlonul unlts ls bused on the
followlng
1he bourd of 'lE ls responslble to shureholders to fulfll lts
stewurdshlp obllgutlons, ln the best lnterest of the
compuny und lts stukeholders
Muxlmlslng shureholder weulthcreutlon on u sustulnuble
busls whlle sufeguurdlng the rlghts of multlple
stukeholders
1he methods we employ to uchleve our gouls ure us
lmportunt to us us the gouls themselves
No one person hus unfettered powers of declslon muklng
8ulldlng und lmprovlng stukeholder relutlonshlps ls un
lntegrul uspect of bourd effectlveness und u responslble
upprouch to buslness
1uklng un uctlve role ln dlscusslng wlth the relevunt
regulutory bodles the lmplementutlon of governunce
regulutlons, uccountlng stundurds und economlc reforms
ln Srl Lunku und other jurlsdlctlons where the Croup hus
mujor buslness lnterests
Optlng, when pructlcul, for eurly udoptlon of best pructlce
governunce regulutlons und uccountlng stundurds
Our resolve to mulntuln strong governunce pructlces
whlch present strong commerclul udvuntuges especlully
through u lowerlng of our cost of cupltul us u result of the
=,
strengthened stukeholder confldence, purtlculurly the
confldence of our lnvestors, both lnstltutlonul und
lndlvlduul
1he muklng of buslness declslons und resource ullocutlons,
ln un efflclent und tlmely munner, wlthln u frumework thut
ensures trunspurent und ethlcul deullngs whlch ure
compllunt wlth the luws of the country und the stundurds
of governunce our stukeholders expect of us
1BL 8OARD OI DIRLC1ORS
8oard composition and independence
As ut the lust Annuul Cenerul Meetlng (ACM) of 'lE, held on
z6 'une zcc, the bourd conslsted of dlrectors comprlslng
of
o executlve dlrectors (LL) lncludlng the Chulrmun
= nonexecutlve lndependent dlrectors (NLLjlL)
As ut the dute of thls report, the bourd conslsts of 8 members,
comprlslng of
- executlve dlrectors und
= nonexecutlve lndependent dlrectors
lndependence of the Llrectors huve been determlned ln
uccordunce wlth the crlterlu suggested by the Comblned Code
und the crlterlu of the CSL Llstlng Rules revlsed ln 'unuury zcc
und huve been ldentlfled us such ln the bourd proflles glven
luter ln thls report. 1he = lndependent nonexecutlve members
huve submltted slgned conflrmutlons of thelr lndependence.
Conflicts of interest and independence
Over und ubove the lssue of lndependence, euch dlrector hus
u contlnulng responslblllty to determlne whether he or she hus
u potentlul or uctuul confllct of lnterest urlslng from externul
ussoclutlons, lnterests or personul relutlonshlps ln muterlul
mutters whlch ure consldered by the bourd from tlme to tlme.
Llrectors who huve hud un lnterest ln u mutter under
dlscusslon huve excused themselves from dellberutlons on the
subject mutter und huve ubstulned from votlng on them.
Abstentlons, where uppllcuble, from bourd declslons, ure duly
mlnuted.
Prlor to uppolntment to the bourd, ellglble persons ure
requested to muke known thelr vurlous lnterests thut could
potentlully confllct wlth the lnterest of the compuny. Once
uppolnted to the bourd, ull dlrectors ure expected to lnform
the bourd und obtuln bourd cleurunce prlor to ucceptlng uny
posltlon, or enguglng ln uny trunsuctlon thut could creute u
potentlul confllct of lnterest. All nonexecutlve dlrectors ure
requlred to notlfy the ChulrmunCLO of chunges to thelr
current bourd representutlons. Letulls of compunles ln whlch
bourd members hold bourd or bourd commlttee membershlp
ls uvulluble wlth the compuny for lnspectlon by shureholders
on request.
Senior Independent Director
lrunklyn Ameruslnghe wus conflrmed us the Senlor
lndependent Llrector (SlL). 1he terms of reference of the role
lnclude
Leudlng the evuluutlon und upprulsuls of the performunce
of the ChulrmunCLO
Chulrlng the Nomlnutlons Commlttee when conslderlng
successlon for the role of ChulrmunCLO
Actlng us the polnt of contuct for stukeholders wlth
concerns whlch huve fulled to be resolved through the
normul chunnels
=8
Share Management Material Lmployed by Iamily member, Continously
Bolding
jDirector
z
8usiness the Company
a
a director served for nine
Relationship
|
or CLO
<
years
6
Lxecutive Director (LD)
S Rutnuyuke
A Cunewurdene
S Cunusekeru*
R Pelrls
Non LxecutivejIndependent
Director (NLDjID)
l Ameruslnghe
1 Lus
S Lnderby
L Rodrlgo
S 1lruchelvum
* retlred w.e.f. -c 'une zcc

complant
complant wtn explanaton

Definitions Lxplanation
. Shureholdlng currylng not less thun c of votlng rlghts None of the lndlvlduul LL or NLLjlL shureholdlng exceeds
z. Llrector of unother compuny** None of the NLLjlLs ure dlrectors of unother compuny us deflned
,. lncomejNon cush beneflt equlvulent to zc of the dlrector's lncome NLLjlL lncomejcush beneflts ure less thun zc of lndlvlduul
dlrector lncome
o. z yeurs lmmedlutely preceedlng uppolntment us dlrector None of the NLLjlL ure employed or huve been employed ut 'lE
,. Close fumlly member who ls u dlrector or CLO No fumlly members of the LL or NLLjlLs ls u dlrectorjCLO
6. Eus served on the bourd conltnously for u perlod exceedlng nlne yeur see note below
Note. All drectors make a jormal declaraton oj all tner nterests on an annual bass. 8ased on sucn declaratons and notwtnstandng tnat
|ranklyn Amerasngne and 1arun as nave completed consecutve years, tne board consders tnem 'ndependent' gven tner objectve and
unbased approacn to matters oj tne board.
** Other companes n wncn a majorty oj tne otner drectors oj tne lsted company, are employed, or are drectors or nave a sgnjcant
snarenoldng or nave a materal busness relatonsnp
CORPORA1L COvLRNANCL
=
Actlng us un ulternutlve polnt of contuct to the Chulrmun
CLO for executlve dlrectors
Meetlng wlth the other nonexecutlve dlrectors, wlthout
the presence of the ChulrmunCLO, on ut leust un unnuul
busls und uddresslng uny concerns wlth the ChulrmunCLO
or the bourd us upproprlute
Non LxecutivejIndependent Directors and the 8oard 8alance
All nonexecutlve dlrectors (NLL) ure encouruged to propose
dlscusslon ltems for the bourd meetlngs.
1he bourd ls of the vlew thut lts present composltlon ensures
u rlght bulunce between executlve expedlency und
lndependent judgment. Collectlvely, the nonexecutlve
dlrectors brlng u runge of vulue uddlng domestlc und
lnternutlonul experlence, und expertlse, ln speclullsed
functlons. 1he compuny ls consclous of the need to mulntuln
un upproprlute mlx of skllls und experlence on the bourd und
to refresh progresslvely lts composltlon over tlme. 1he
compuny ulso notes the vulue thut hus been brought to beur
by the NLLs on the governunce of the Croup. 1he NLLs of the
bourd collectlvely possess strong flnunclul ucumen und ure ln
good posltlons to ussess the lntegrlty of the Croup's flnunclul
reportlng systems und controls, contlnuully revlew und
crltlque these systems und muke chunges to them us
necessury.
8oard responsibilities and decision rights
1he 8ourd of Llrectors ls uccountuble to the shureholders for
the governunce of the compuny. All dlrectors ure uccountuble
for the proper stewurdshlp of the compuny's uffulrs und shure
u responslblllty ln ensurlng the hlghest stundurds of dlsclosure
und reportlng, ethlcs und lntegrlty ucross the Croup. Powers
speclflcully reserved for the bourd us hlghllghted ln the 'lE
'declslon mutrlx' lnclude
Provldlng dlrectlon und guldunce to the compuny ln the
formulutlon of lts strutegles und ln the pursuunce of lts
operutlonul und flnunclul gouls
Monltorlng systems of governunce und compllunce
Overseelng systems of lnternul control und rlsk
munugement
Letermlnlng uny chunges to the dlscretlonsjuuthorltles
deleguted from the bourd to the executlve levels
Approvlng mujor ucqulsltlons und dlsposuls und cupltul
expendlture
Revlewlng ER processes wlth emphusls on top
munugement successlon plunnlng
Approvlng unnuul budgets und struteglc pluns
Approvlng uny chunges to constltutlonul documents und
the lssue of 'lE equltyjdebt securltles
Appolntlng und revlewlng the performunce of the
ChulrmunCLO
Delegation of authority
1he bourd hus, subject to predeflned llmlts, deleguted lts
executlve uuthorlty to the ChulrmunCLO who exerclses thls
uuthorlty through the Croup Lxecutlve Commlttee (CLC),
whlch he heuds und to whlch he provldes leudershlp und
dlrectlon.
vhlle the bourd sets the hlgh level struteglc dlrectlon und the
overull pollcy frumework of the Croup, lt hus deleguted the
lmplementutlon of bourd set struteglesjpollcles und strutegy
formulutlon ut speclflc lndustry group level to the Chulrmun
CLO. Letulls of the Croup's munugement, operutlng und
overluy structures ure detulled luter ln the report.
8ourd declslon rlghts, us opposed to executlve dlrector
declslon rlghts, coverlng people, strutegy und plunnlng und
flnunce ure well deflned und metlculously followed und ensure
the bulunce between the speed of declslon muklng und
upproprlute debute. 1hese declslon rlghts ure revlewed
regulurly wlth u vlew to ussesslng lts upproprluteness ln
meetlng the munugement needs of the duy.
1he bourd hus ulso deleguted some of lts functlons to bourd
commlttees whlle retulnlng flnul declslon rlghts pertulnlng to
mutters under the purvlew of these commlttees.
All three commlttees ure chulred by lndependent dlrectors
uppolnted by the bourd.
Role of the ChairmanCLO
1he Chulrmun, who ls ulso the Chlef Lxecutlve Offlcer (CLO), ls
responslble for
leudlng the bourd und for lts effectlveness
executlng the strutegles und pollcles of the bourd
1he upproprluteness of comblnlng the roles of Chulrmun und
CLO ls dlscussed regulurly (ln the mlnlmum, once per yeur) on
the busls of such dlscusslons und the 'pros' und 'cons' thut
emerged from the revlew by the 8oston Consultlng Croup ln
zcc-, the bourd deems thut comblnlng the two roles ls more
upproprlute for the Croup ut present, ln meetlng stukeholder
objectlves ln u conglomerute settlng.
1he Chulrmun, whlle leudlng the bourd ln effectlvely
dlschurglng lts dutles towurds ull stukeholders, ensures wlth
the usslstunce of the 8ourd Secretury, thut
bourd procedures ure followed
dlrectors recelve tlmely, uccurute und cleur lnformutlon
updutes on mutters urlslng between meetlngs
bourd ugendus ure dlsputched z weeks prlor to the bourd
meetlng leuvlng c cleur culendur duys for the dlrectors to
reud the muterlul
1he Chairman:
sets the tone for the governunce und ethlcul frumework of
the Croup
6c
ensures thut constructlve worklng relutlons ure
mulntulned between the executlve und nonexecutlve
members of the bourd
As the CLO, he guldes und supervlses executlve dlrectors ln
strlklng u bulunce between thelr bourd und executlve
responslbllltles.
1he ChulrmunCLO hud structured dlrect dlscusslon wlth the
nonexecutlve dlrectors on occuslon durlng the yeur, wlthout
the presence of the other executlve dlrectors. lssues urlslng
from such dlscusslon huve been uctloned ln consultutlon wlth
the uffected persons.
1he bourd composltlon, Croup orgunlsutlon, und ln purtlculur,
the commlttee overluy structure dlscussed, ln thls report
ensure thut no one lndlvlduul hus unfettered powers of
declslon muklng. As the heud of the Croup Lxecutlve
Commlttee (CLC), the ChulrmunCLO provldes the overull
dlrectlon und pollcyjexecutlon frumework for the bourd's
declslons vlu thls structure. Lxperlence hus proved thut thls
structure hus enubled hlm to effectlvely bulunce hls role us the
Chulrmun of the bourd und the CLO of the compunyjCroup.
8oard meetings, agenda and attendance
As u generul rule, the bourd of 'lE meets once every quurter,
ln the leust. Lurlng the yeur under revlew, the bourd met on -
occuslons whlch ls less thun the recommended due to the
trunsltlon from meetlng every other month to meetlng once u
quurter. Eowever, us lndlcuted on the tuble below, the 8ourd
hus met = tlmes ln the lust - months.
1he formul schedule of mutters reserved for bourd
conslderutlon und declslon, lnclude the ltems summurlsed
under '8ourd responslbllltles und declslon rlghts' us ufore
mentloned, und other mutters huvlng u muterlul effect on the
compuny und the Croup. All mutters consldered were
ununlmously resolved ufter cureful conslderutlon of the
vurlous oplnlons und vlews expressed by the dlrectors.
Your bourd stutes thut every one of lts members dedlcuted
udequute tlme und effort ln dlschurglng thelr dutles und thut
member uttendunce durlng bourd meetlngs und bourd
commlttee meetlngs wus heulthy. ln uddltlon to the 8ourd
meetlngs the followlng commlttees met durlng the flnunclul
yeur:
Allowlng for nonexecutlve dlrector lnvolvement ln vurlous
bourd commlttees und tlme spent by them ln conslderlng
vurlous mutters thut requlre dlscusslon und declslon ln
between the formul bourd meetlngs, the compuny estlmutes
thut nonexecutlve dlrectors devoted uround -c full tlme
equlvulent duys euch to the Croup durlng the yeur.
Supply of information and board induction
All dlrectors ure fully brlefed on lmportunt developments ln
the vurlous buslness uctlvltles of the Croup und they regulurly
recelve lnformutlon concernlng the Croup's
operutlons
flnunces
rlsks
employees
potentlul confllcts of lnterest sltuutlons ln order to enuble
them to fulfll thelr dutles und obllgutlons effectlvely
Steps ure ulso tuken ln ensurlng thut newly uppolnted non
executlve dlrectors ure upprlsed of the operutlons of the
Croup, lts strutegles, vulues und culture, operutlng model,
pollcles, governunce frumework und processes. 1helr
uttentlon ls ulso druwn to thelr responslbllltles us dlrectors ln
terms of prevulllng leglslutlon und to the Code of Conduct
demunded by the compuny.
1he dlrectors huve uccess to externul und lnternul uudltors,
experts, senlor munugers under u structured urrungement,
und to lnformutlon, us ls necessury, to curry out thelr dutles
und responslbllltles effectlvely und efflclently. Apurt from
perlodlc performunce reports, dlrectors ulso recelve
lnformutlon updutes from munugement on toplcul mutters,
new regulutlons und best pructlces us relevunt to the Croup's
buslnesses. Addltlonully, ull dlrectors huve uccess to the
servlces of the compuny secreturles whose uppolntment
undjor removul ls the responslblllty of the bourd.
Lxternal professional advice
1he bourd seeks lndependent professlonul udvlce when und
where necessury. Lurlng the yeur under revlew, professlonul
udvlce wus sought on vurlous mutters lncludlng
Legul, tux und uccountlng uspects, purtlculurly where
lndependent externul udvlce wus deemed necessury ln
ensurlng the lntegrlty of the subject declslon
lmpucts of the Srl Lunkun economy on 'lE buslnesses und
other economlc udvlsory servlces
6
Actuurlul vuluutlon of grutulty und other vuluutlons for
lnsurunce purposes
Lesktop vuluutlon of lnvestment property
Conductlng u Croup wlde stukeholder engugement for
upgrudlng the Sustulnublllty reportlng to u '8' from the
prevlous C per the guldellnes of the Clobul Reportlng
lnltlutlve
8oard and CLO's performance appraisal
1he bourd contlnued wlth lts unnuul bourd performunce
upprulsul ln zccjc. lt ls u formullsed process of self upprulsul,
whereby euch member ussesses, on un unonymous busls, the
performunce of the bourd under the heudlngs of
role clurlty und effectlve dlschurge of responslbllltles (ln
relutlon to the responslbllltles hlghllghted eurller ln thls
report)
people mlx und structures
systems und procedures
quullty of purtlclputlon
bourd lmuge
1he scorlng, und open comments, were colluted by the SlL
und the results were unulysed to glve the bourd un lndlcutlon
of lts effectlveness us well us ureus thut requlred uddresslng
undjor strengthenlng. Lesplte the orlglnul unonymlty of the
remurks, the open und frunk dlscusslons thut follow, lncludlng
some dlrectors ldentlfylng themselves us the person muklng
the remurk, reflects the keenness of the bourd to muke
themselves more effectlve. 1he evuluutlons reveuled thut
whllst ureus prevlously ldentlfled us weuk hud strengthened ,
there were others whlch could be further lmproved.
1he Remunerutlon Commlttee, chulred by the SlL, upprulses
the performunce of the ChulrmunCLO on the busls of pre
ugreed objectlves for the Croup set ln consultutlon wlth the
bourd us follows.
Croup's Croup's Soft aspects
performance performance
ugulnst plun ugulnst peers compuny lmuge
revenue growth customer orlentutlon
murket shure humun resource
munugement
proflt growth socletul trust
eurnlngs per shure
8oard appointments and Nominations Committee
1he responslblllty for ldentlfylng und proposlng sultuble
cundldutes for uppolntment us nonexecutlve dlrectors to the
bourd of 'lE, ln keeplng wlth the turget bourd composltlon
und sklll requlrements, lles wlth the Nomlnutlons Commlttee.
1he Nomlnutlons Commlttee ussesses the current needs und
the emerglng needs of the Croup ln determlnlng the future
composltlon of the 8ourd. 1he emerglng needs comblned wlth
the objectlves und the strutegles set for the comlng yeurs ure
consldered key when ldentlfylng sklll sets requlred, especlully
skllls thut muy not be reudlly uvulluble wlthln Srl Lunku. 8used
on these requlrements the Nomlnutlons Commlttee scuns the
externul envlronment to ldentlfy potentlul cundldutes thut cun
udd vulue to the exlstlng bourd. Currently the bourd members
huve vurylng quullflcutlons ln economlc, envlronmentul und
soclul toplcs und ure lnvolved ln muny commlttees und
ussoclutlons thut serve the buslness communlty us u whole.
1he nomlnutlons commlttee ulso munuges the process of
uppolntlng the ChulrmunCLO of 'lE.
Lurlng the yeur, the Nomlnutlons Commlttee comprlsed of -
lndependent dlrectors (lncludlng the Chulrmun of the
commlttee) und the ChulrmunCLO of 'lE.
8ourd uppolntments follow u formul und trunspurent
procedure. 1here were no new uppolntees to the bourd ln the
flnunclul yeur zccjc.
1he detulled Nomlnutlons Commlttee report ls glven ln the
8ourd Commlttee reports sectlon of the Annuul Report.
1enure, retirement and reelection
1he LLs ure uppolnted und recommended for reelectlon
untll thelr prescrlbed compuny retlrement uge.
1he NLL's ure uppolnted for u term of three yeurs, ldeully
up to u muxlmum of three terms euch, subject to the uge
llmlt us per stututory provlslon ut the tlme of re
uppolntment followlng the end of u term.
Onethlrd of the dlrectors, except the ChulrmunCLO, retlre by
rotutlon on the busls prescrlbed ln the urtlcles of the compuny.
A dlrector retlrlng by rotutlon ls ellglble for reelectlon by u
shureholder resolutlon ut the ACM.
All dlrectors ure subject to electlon by shureholders ut the flrst
ACM ufter thelr uppolntment. 1he bourd recommends thut
shureholders vote ln fuvour of the resolutlons to elect the
relevunt dlrectors who come up for reelectlon ut the ACM.
1helr blogruphlcul proflles huve been provlded ln the Annuul
Report. 1he resolutlons cover the reelectlon of 1urun Lus
who retlres ln llne wlth Sectlon zc of the Compunles Act zcc,,
upon reuchlng the uge of ,c, us well us A L Cunewurdene und
' R l Pelrls who retlre by rotutlon thls yeur und become ellglble
for electlon ut the ACM to be held on z8 'une zcc.
As mentloned ln the lust Annuul Report, Sumlthru Cunesekeru
retlred wlth effect from -c 'une zcc.
RLMUNLRA1ION
Remuneration Committee
1he Remunerutlon Commlttee, comprlslng - lndependent
dlrectors, ls responslble for
usslstlng the 8ourd of Llrectors ln estubllshlng
remunerutlon pollcles und pructlces ln the Croup, und
ln revlewlng und recommendlng to the bourd upproprlute
remunerutlon puckuges for the ChulrmunCLO und the
other executlve dlrectors.
1he Commlttee hus been fully upprlsed of the current
remunerutlon pollcy of the Croup, the meusures tuken by the
Croup regurdlng stufflng und remunerutlon durlng the next z
to 8 months, und the chullenges thut the Croup ls llkely to
fuce wlth buslnesses vylng for tulent ln u rupldly developlng
economlc sltuutlon ln the country.
1he Remunerutlon Commlttee ln consultutlon wlth the
ChulrmunCLO ensures thut
6z
Levels of remunerutlon ure sufflclent to uttruct, retuln und
motlvute dlrectors of the deslred quullty ut the rlght prlce
Shure optlons ure not uwurded below murket prlce
Stututory und legul requlrements ure complled wlth
None of the executlve dlrectors or members of the CLC ure
lnvolved ln lnfluenclng or determlnlng thelr own
compensutlon puckuges.
lor the purpose of thls report, the terms 'compensutlon' und
'remunerutlon' huve been used ln reference to cush und non
cush beneflts recelved ln conslderutlon of employment
(excludlng stututory entltlements such us employees
provldent fund und employees trust fund contrlbutlons),
unless otherwlse quullfled.
1he detulled Remunerutlon Commlttee report ls glven ln the
8ourd Commlttee reports sectlon of the Annuul Report.
8oard remuneration
Makeup of remuneration for executive directors
1he remunerutlon of the ChulrmunCLO und the executlve
dlrectors ure determlned us per the remunerutlon prlnclples
descrlbed ln 1he Power of People und Processes sectlon of the
Annuul Report. At thls hlgher level, the benchmurk welghtuge
between lndlvlduul und orgunlsutlon performunces ln
estubllshlng compensutlon ls zc:8c.
1he remunerutlon of executlve dlrectors huve u slgnlflcunt
element whlch ls vurluble, such vurlublllty belng llnked to the
peer udjusted consollduted Croup bottomllne und mlnlmum
returns on shureholder funds.
1he remunerutlon of LLs ln zccjc compured to thut ln
zcc8jc shows u lower vurluble puy component reflectlng the
uctuul performunce of the Croup ln zcc8jc us ugulnst the
turgets set.
ln order to further ullgn the lnterests of executlve dlrectors
und shureholders, the executlve dlrectors, llke other ellglble
employees, huve recelved employee shure optlons bused on
role responslblllty und uctuul performunce. 1he number of
optlons so uwurded wus recommended to the bourd by the
Remunerutlon Commlttee. Such optlons were uwurded ut the
closlng murket prlce on the dute of uwurd. 1he lust LSOP
Awurd wus mude on the , Lecember zcc.
1he shure optlons mude uvulluble to euch of the executlve
dlrectors for the yeur huve been dlsclosed ln the Annuul
Report of the 8ourd of Llrectors zccjc. Commenclng
'unuury zcc, dlsclosures huve been mude to the Colombo
Stock Lxchunge us un when executlve dlrectors exerclsed thelr
optlons.
Makeup of remuneration for nonexecutive directors
Compensutlon of NLLs ls determlned ln reference to fees puld
to other NLLs of compuruble compunles. 1he fees recelved by
NLLs ls determlned by the bourd und revlewed unnuully.
NLLs recelve u fee for devotlng tlme und expertlse for the
beneflt of the Croup ln thelr cupuclty us Llrector und
uddltlonul fees for elther chulrlng or belng u member of u
commlttee. NLLs do not recelve uny performuncejlncentlve
puyments und ure not ellglble to purtlclpute ln uny of the
Croup's penslon pluns or shure optlon pluns. Nonexecutlve
fees ure not tlme bound or deflned by u muxlmumjmlnlmum
number of hours commltted to the Croup per unnum, und
hence ls not subject to uddltlonuljlower fees for
uddltlonuljlesser tlme devoted.
value of total remuneration (cash) Rs. million
Lxecutlve dlrectors (compuny) o-
Nonexecutlve dlrectors (compuny) zo
'Cush' compensutlon hlghllghted ubove comprlses sulury,
penslon contrlbutlons, short term lncentlve pluns und other
nonshure bused beneflts. ln uccordunce wlth the guldellnes of
the Securltles & Lxchunge Commlsslon of Srl Lunku, we huve
dlsclosed the uggregute remunerutlon puld to executlve und
nonexecutlve dlrectors durlng the flnunclul yeur zccjc.
ACCOUN1A8ILI1Y AND AUDI1
Organisational and operational control
1he operutlng model currently ln pluce cleurly deflnes
uuthorlty llmlts, responslbllltles und uccountublllty fucllltutlng
operutlng expedlency, heulthy debute und declslon freedom.
1he commlttee structure, us deplcted below, whllst ensurlng
thut no one operutlng body or lndlvlduul hus unfettered
powers of declslon muklng, ullows consensus to us greut un
extent us pructlcul, but lt ls the ChulrmunCLO, the presldents,
sectorjfunctlonul heuds und proflt centrejfunctlon munugers,
who ure uccountuble for the totul Croup, lndustryjfunctlons
groups, the sectorsjfunctlons und the buslness unltsjsub
functlons respectlvely.
1he lndependence of the flnunce functlon ls preserved
through u structure thut hus executlve vlce presldents
flnunce und sector flnunclul controllers huvlng u dlrect
functlonul reportlng llne to the Croup llnunce Llrector ln u
6-
settlng thut ullows them to contrlbute und udd vulue to
operutlons vlu thelr dlrect udmlnlstrutlve reportlng llnks wlth
presldents und sector heuds.
Croup Lxecutive Committee (CLC) and succession planning
As ut - Murch zcc, the member CLC conslsted of the
ChulrmunCLO, the Leputy Chulrmun, the Croup llnunce
dlrector und the presldents. 1he CLC wus expunded durlng the
flnunclul yeur, wlth the lncluslon of Suresh Rujendru und
Sunjeevu lernundo ln u move to spreud the 'uccountublllty
loud' over u greuter number of persons. 1hls move wus
necessury ln order to shurpen the executlon und dellvery of
the ugreed pluns.
1he CLC ls the overluy structure thut lmplements, under the
leudershlp und dlrectlon of the ChulrmunCLO, the pollcles und
strutegles determlned by the bourd, munuges, through
delegutlon und empowerment, the buslness und uffulrs of the
Croup, mukes portfollo declslons und prlorltlses the ullocutlon
of cupltul, technlcul und humun resources.
1he CLC ulso usslsts the ChulrmunCLO ln successlon plunnlng
und the uppolntment of presldents, sector heuds, functlonul
heuds und other senlor munugers, und the cureer
munugement of usslstunt vlce presldents und ubove. 1hls
process ls well tested und, on u prouctlve busls, u pool of
potentlul successors for u number of key posltlons ure
ldentlfled und eurmurked for speclflc trulnlng und
development us ls necessury. A key feuture of the operutlng
model ls thut the CLC members, purtlculurly the presldents,
not only pluy u mentorlng role, but ure totully uccountuble for
the buslnesses und functlons under them.
Croup Operating Committee (COC)
As ut - Murch zcc, the zc member COC conslsted of the
ChulrmunCLO, the Leputy Chulrmun, the Croup llnunce
Llrector, the presldents und the executlve vlce presldents.
1he COC provldes u plutform to shure leurnlng on lssues thut
cross lndustry groups, sectors, buslness unlts und functlons. lt
ls ulso the forum to dlscuss Croup strutegy, Croup lnltlutlves
und Croup best pructlces. lts muln purpose ls to uct us u
'condult' between the vurlous buslnesses wlthln the Croup
towurds ldentlfylng und extructlng Croup synergles und the
lmplementutlon of such.
Croup Management Committee (CMC) and other committees
and succession planning
1he other key operutlng commlttees ure the CMCs, the Sector
Commlttees und the Munugement Commlttees thut focus on
strutegy, performunce monltorlng, cureer munugement und
successlon plunnlng of employees below usslstunt vlce
presldent level, rlsk munugement und group lnltlutlves ut un
lndustry group, sector, struteglc buslness unlt und buslness
unlt levels respectlvely. lunctlons huve CMCs und functlonul
commlttees. 8uslness und lunctlon unlts ure encouruged to
tuke responslblllty und uccountublllty to the lowest posslble
level vlu sultubly structured commlttees und teums ln u
munugement by objectlves settlng.
1he ugendus of these commlttees ure curefully structured to
uvold dupllcutlon of effort und ensure thut dlscusslons und
debute ure complementury both ln terms of u bottomup und
topdown flow of uccountubllltles und lnformutlon. As stuted
eurller, the responslblllty und uccountublllty lle wlth the
ChulrmunCLO, the presldents, the sectorjfunctlonul heuds
und the proflt centrejfunctlon munugers us uppllcuble.
1he lntroductlon of peer udjusted orgunlsutlonul rutlngs ln
zcc,jc8 ln determlnlng puy for performunce hus resulted ln
the seurch by buslness unlts, sectors und lndustry groups for
productlvlty enhuncements, process lmprovements und cost
efflclencles wlthln u frumework of better teumwork.
Operations planning, monitoring and decision rights
Actuul flnuncluls ure compured ugulnst the orlglnul plun undjor
the reforecust on u monthly busls ut CMC, Sector Commlttee,
Munugement Commlttee und Lepurtmentul Commlttee levels
und ure revlewed ut leust quurterly by the CLC. 1he Chulrmun
CLO und the CLC ure uble to vlew key flnunclul lnformutlon for
ull Croup compunles on u reul tlme busls vlu the Croup LRP
system, whlle the presldents und executlve vlce presldents,
the CLOs of buslness unlts und munugers of functlons ure uble
to vlew, on un onllne busls, lnformutlon relevunt to thelr ureus
of responslblllty.
Responslblllty for monltorlng und uchlevlng pluns us well us
ensurlng compllunce wlth Croup pollcles und guldellnes rests
wlth the chlef executlve offlcers of euch Croup compuny und
heuds of functlons ut the corporute centre ut the buslness unlt
und functlon levels.
At the CMC level und ubove, the focus ls more on heudllne
flnunclul und nonflnunclul lndlcutors, struteglc prlorltles, rlsk
munugement, use of l1 us u tool of competltlve udvuntuge,
new buslness development, contlnuous process
lmprovements und humun resource munugement.
Process of investment appraisal and investment decision
Over the yeurs, the Croup hus mulntulned u process of
lnvestment upprulsul und lnvestment declslon whlch ensures
the lnvolvement of the relevunt persons. ln thls munner,
severul vlews, oplnlons und udvlce ure obtulned prlor to the
muklng of the declslon. Our experlence ls thut u hollstlc und
well debuted vlew of the commerclul vlublllty und potentlul of
uny project lncludlng operutlonul, flnunclul, fundlng, rlsk und
tux lmpllcutlons hus most of the tlme culmlnuted ln u good
result.
A summury of the process ls glven us follows
A project's orlgln could be un operutlng commlttee such us
the CLC, COC, CMC etc, u buslness unlt, the Croup's
lnternul New 8uslness Levelopment or Corporute llnunce
functlons or ulternutlvely u publlc udvertlsement, Request
for Proposul (RlP) or u cull for un Lxpresslons of lnterest.
lf there ls lnterest ln prlnclple, the presldent of the lndustry
group thut the project fulls under or u CLC uppolnted
commlttee wlll enguge the Corporute llnunce or New
8uslness Levelopment dlvlslons to work wlth other
relevunt persons ln the Croup ln prepurlng u detulled
report whlch would cover key buslness conslderutlons
such us lndustry overvlew und trends, the potentlul
operutlng und flnunclul performunce of the project, key
ussumptlons und sensltlvltles, SvO1 und rlsk unulysls, ER
lssues, l1 conslderutlons, tux, fundlng costs und optlmum
structurlng of the trunsuctlon umong others. A
comprehenslve study of the tux reglme thut upplles to the
project wlll be done ln order to determlne tux lncentlves
uvulluble us well us to propose formut of lncorporutlon.
6o
Such u feuslblllty report ls next dlscussed by the CLC und,
lf found to meet the Croup's struteglc und flnunclul
objectlves wlll be forwurded to the bourd for upprovul ln
prlnclple to proceed to detulled due dlllgence und
negotlutlon lf the lnvestment ls beyond the uuthorlty llmlts
of the CLC.
Once upprovul ln prlnclple ls obtulned from the CLC undjor
the bourd, us uppllcuble, the project teum, whlch ls
lnvurlubly multldlsclpllned, wlll proceed to the next phuse
of lnvestlgutlon whlch would focus on detulled
operutlonul, commerclul, flnunclul und legul due dlllgence.
Llscusslons wlll ulso commence wlth regulutory und
llcenslng uuthorltles und flnunclul lnstltutlons und posslble
purtners us relevunt und necessury. Soclul und
envlronmentul lmpucts wlll ulso be consldered ln ensurlng
the sustulnublllty of the buslness und the communltles
touched by lt.
vhere the trunsuctlon lnvolves the trunsfer or leuse of
lund, tltle seurches would be conducted for both prlvute
und publlc lund. ln the cuse of publlc lund every step would
be tuken to ensure compllunce wlth the rules und
regulutlons. As upproprlute, wrltten uuthorlty und
upprovuls wlll be obtulned.
vhere the project ls u purt of u prlvutlsutlon, the entlre
process would be conducted ln llne wlth the dlrectlves of
the relevunt udmlnlstrutlve uuthorlty us communlcuted
through Lxpresslons of lnterest, RlPs, prebld meetlngs
und offlclul upprovuls und correspondence. 1he CLC
undjor the 8ourd wlll uppolnt u person to leud the
dlscusslons on behulf of the compuny und ln most
lnstunces thls would be the presldent of the subject
lndustry group.
Subject to the project sutlsfylng ull the crlterlu us
hlghllghted before, the flnul upprovul to proceed wlll be
glven by the bourd.
As ls uppurent from the foregolng, ull lnvestment declslons ure
mude through u commlttee structure. No one lndlvlduul hus
unfettered declslon muklng powers ln lnvestment declslons.
Integrity of systems processes and internal control
Your bourd hus tuken necessury steps to ensure the lntegrlty
of the Croup's uccountlng und flnunclul reportlng systems,
lnternul control systems und ulso the revlew und monltorlng of
such systems on u perlodlc busls. Our systems coverlng rlsk
munugement, flnunclul und operutlonul control, ethlcul
conduct, compllunce wlth legul und regulutory requlrements
und corporute soclul responslblllty ure detulled below.
Audit Committee, external auditors and independence
1he Audlt Commlttee comprlses of four lndependent non
executlve dlrectors whose functlons ure ln uccordunce wlth
the llstlng rules. lt ls governed by u churter whlch, ln the muln,
covers the prlnclples governlng flnunclul reportlng, lnternul
control und the munugement of rlsks, both flnunclul und
operutlonul, und the worklngs of the commlttee.
1he commlttee ls responslble for the conslderutlon und
uppolntment of externul uudltors, the mulntenunce of u
professlonul relutlonshlp wlth them, revlewlng the uccountlng
prlnclples, pollcles und pructlces udopted ln the prepurutlon of
publlc flnunclul lnformutlon und exumlnlng ull documents
representlng the flnul flnunclul stutements. A quurterly self
certlflcutlon progrumme thut requlres the chlef flnunclul
offlcers of lndustrygroups, heuds of flnunce of sectors und
flnunce munugers of operutlng unlts to conflrm compllunce
wlth flnunclul stundurds und regulutlons und requlres the CLOs
of buslness unlts to conflrm operutlonul compllunce wlth
stututory und other regulutlons und key control procedures,
coupled wlth the ldentlflcutlon of uny devlutlons from the
expected norms huve slgnlflcuntly ulded the commlttee ln lts
efforts ln ensurlng correct flnunclul reportlng und effectlve
lnternul control und rlsk munugement.
1he ChulrmunCLO, the Croup llnunce Llrector, the Croup
llnunclul Controller und the Eeud of Rlsk Control und Revlew
und the externul uudltors ure regulur lnvltees to the meetlngs
of the Audlt Commlttee.
1he detulled Audlt Commlttee report lncludlng the ureus
revlewed durlng the flnunclul yeur zccjc ls found ln the
8ourd Commlttee report sectlon of the Annuul Report.
Lrnst & Young ure the externul uudltors of the holdlng
compuny und muny other Croup compunles und ulso uudlt the
consollduted flnunclul stutements. 1he lndlvlduul Croup
compunles employ muny other uudlt flrms, these belng, lPMC
lord, Rhodes, 1hornton & Co, Prlcewuterhouse Coopers, S'MS
Assoclutes, Leloltte und 1ouche, lndlu und Luthru und Luthru,
lndlu. ln uddltlon to the normul uudlt servlces, Lrnst und Young
und the other externul uudltors, ulso provlded certuln non
uudlt servlces to the Croup. Eowever, the leudjconsolldutor
uudltor would not enguge ln uny servlces whlch ure ln the
restrlcted cutegory us deflned by the CSL for externul uudltors.
All such servlces huve been provlded wlth the full knowledge
of the respectlve uudlt commlttees und ure ussessed to ensure
thut there ls no compromlse of externul uudltor
lndependence. 1he bourd hus ugreed thut, ldeully, such non
uudlt servlces should not exceed the vulue of the totul uudlt
fees churged by the subject uudltor wlthln the relevunt
geogruphlc terrltory. 1he externul uudltor ulso provldes u
certlflcute of lndependence on un unnuul busls.
ve huve sepurutely clusslfled the uudlt und nonuudlt fees puld
by the compuny und Croup to our uudltors us detulled ln the
Notes to the llnunclul Stutements of the Annuul Report.
Cure ls tuken to ensure thut the lnternul uudlt functlon ln
Croup compunles ls not outsourced to the externul uudltor of
thut compuny. 1he Croup uttempts, where pructlcul, to glve
preference to uudlt flrms who ure not externul uudltors of uny
Croup compuny, ln currylng out lnternul uudlt work ln u further
uttempt to ensure externul uudltor lndependence.
Lurlng the yeur, wlth u vlew to udopt current und emerglng
best pructlces ln the sourclng of externul uudlts, wlthln the
greuter goul of enhunclng our Corporute Covernunce, u revlew
of externul uudltors und the scoplng of thelr servlces wus
undertuken ucross the Croup.
A Request for Proposul (RlP) process wus sought us purt of
the 'lE corporute governunce process to entertuln proposuls
from reputed uudlt flrms wlth lnternutlonul
ufflllutlonjrepresentutlon ln order to select u Croup uudltor
huvlng sufflclent uudlt coveruge.
8lds were recelved on the busls of u sepurute technlcul und
flnunclul proposuls und evuluuted by u 1echnlcul Lvuluutlon
Commlttee (1LC). 1he recommendutlons of the 1LC were
6=
revlewed by u steerlng commlttee comprlslng of u mujorlty of
lndependent, non executlve dlrectors representlng 'ohn
leells Eoldlngs PLC und other llsted compunles wlthln the
Croup. 1he recommendutlon of the steerlng commlttee wus
further revlewed by the Audlt Commlttee of 'lE.
As u result of such evuluutlon, chunges ln externul uudltors
huve been recommended to shureholders ln some of the
Croup compunles from the flnunclul yeur zccj, to be
effectlve from the dute of thelr respectlve ACMs.
1he Audltors' report on the flnunclul stutements of the
compuny for the yeur under revlew ls found ln the llnunclul
Reports sectlon of the Annuul Report.
System of internal control
Your bourd hus, through the lnvolvement of the Rlsk Revlew
und Control depurtment, tuken steps to obtuln ussurunce thut
systems deslgned to sufeguurd the compuny's ussets,
mulntuln proper uccountlng records und provlde munugement
lnformutlon, ure ln pluce und ure functlonlng uccordlng to
expectutlons. 1he rlsk revlew progrumme coverlng the
lnternul uudlt of the whole Croup ls outsourced und the
reports urlslng out of such uudlts ure, ln the flrst lnstunce,
consldered und dlscussed ut the buslnessjfunctlonul unlt levels
und ufter revlew by the sector heud und the presldent of the
lndustry group ure forwurded to the relevunt uudlt commlttee
on u regulur busls. lurther, the uudlt commlttees ulso ussess
the effectlveness of the rlsk revlew process und systems of
lnternul control on u regulur busls. lollowups on lnternul
uudlts ure done on u structured busls.
Risk management
1he CLC hus udopted u Croupwlde rlsk munugement
progrumme to ldentlfy, evuluute und munuge slgnlflcunt
Croup rlsks und stresstest for vurlous rlsk scenurlos. 1he
progrumme ensures thut u multltude of rlsks, urlslng us u result
of the Croup's dlverse operutlons, ure effectlvely munuged ln
creutlng und preservlng shureholder und other stukeholder
weulth. 1he detulled Rlsk Munugement report of the Annuul
Report descrlbes the process of rlsk munugement us udopted
by the Croup und the key rlsks to the uchlevement of the
Croup's struteglc buslness objectlves.
Coing concern and financial reporting
1he dlrectors ure sutlsfled thut the compuny hus sufflclent
resources to contlnue ln operutlon for the foreseeuble future.
ln the unllkely event thut the net ussets of the compuny full
below hulf of shureholders funds, shureholders would be
notlfled und un extruordlnury resolutlon pussed on the
proposed wuy forwurd.
1he golng concern prlnclple hus been udopted ln prepurlng the
flnunclul stutements. All stututory und muterlul declurutlons
ure hlghllghted ln the Annuul Report of the 8ourd of Llrectors
ln the Annuul Report. llnunclul stutements ure prepured ln
uccordunce wlth the Srl Lunku Accountlng Stundurds (SLAS),
lncludlng ull the new und revlsed stundurds lntroduced durlng
the subject yeur, us uppllcuble.
lnformutlon ln the flnunclul stutements of the Annuul Report
ure supplemented by u detulled 'Munugement Llscusslon und
Anulysls' whlch explulns to shureholders the struteglc,
operutlonul, lnvestment und rlsk reluted uspects of the
compuny thut huve trunsluted lnto the reported flnunclul
performunce und ure llkely to lnfluence future results.
1he Stutement of Llrectors' Responslbllltles ln relutlon to
flnunclul reportlng ls glven ln the llnunclul Reports sectlon of
the Annuul Report. 1he dlrectors' lnterests ln contructs of the
compuny ure uddressed ln the Annuul Report of the 8ourd of
Llrectors.
1he dlrectors huve tuken ull reusonuble steps ln ensurlng the
uccurucy und tlmellness of publlshed lnformutlon und ln
presentlng un honest und bulunced ussessment of results ln
the quurterly und unnuul flnunclul stutements. As dlscussed ln
the shureholder relutlons sectlon of thls note, ull prlce
sensltlve lnformutlon hus been mude known to the Colombo
Stock Lxchunge, shureholders und the press ln u tlmely
munner und ln keeplng wlth the regulutlons.
Lthical and responsible decision making
1he bourd encouruges munugement to promote vuluebused
declslon muklng ucross the orgunlsutlon. 1he culture wlthln
'lE druws upon u set of unlfylng vulues to gulde the uctlons
und declslons of the bourd und ull employees. 1he Croup's
vulues ure found ln the 'About Us' sectlon of the Annuul
Report und urejhuve been constuntly referred to by the
ChulrmunCLO, presldents und 8U heuds durlng employee,
ugent und other key stukeholder engugement. 1he Croup
belleves thut the muln source of lts competltlve udvuntuge ls
the trust thut the stukeholders pluce on the core vulues
underlylng lts corporute uctlvltles.
1he 'lE vulues ure dlspluyed on the Croup's lntrunet und ulso
dlssemlnuted ln muny other wuys, lncludlng new employee
lnductlon sesslons, feedbuck sesslons und performunce
munugement feedbuck sesslons. 1he senlor munugement of
the Croup, generully recognlsed us AvP und ubove grudes
lncludlng the ChulrmunCLO, ure expected to wulk the tulk und
thelr munugement behuvlour ls monltored through un unnuul
-6c degree feedbuck. All the Croup's recognltlon schemes
lnslst, us u mlnlmum, thut ull nomlnees huve llved the 'lE
vulues.
Securities trading policy
1he Croup's securltles trudlng pollcy prohlblts ull employees
und ugents enguged by 'lE who ure uwure of unpubllshed
prlce sensltlve lnformutlon from trudlng ln 'lE shures or the
shures of other compunles ln whlch the Croup hus u present
buslness lnterest. 1he bourd, CLC, COC us well us certuln
ldentlfled employees ln senlor executlve roles who ure prlvy to
'lE's results prlor to lts uvullublllty to the publlc ure prohlblted
from trudlng durlng perlods leudlng up to the releuse of
quurterly und unnuul results, new lnvestments, purtlculurly
mergers und ucqulsltlons, unnouncements of scrlp lssues und
dlvldend puyments.
Open communications
As detulled ln 1he Power of People und Processes sectlon of
the Annuul Report, the 'lE bourd belleves ln mulntulnlng
opendoor pollcles for lts employees und key stukeholders und
thls ls promoted ut ull levels of the Croup.
Whistleblower policy
1he Croup hus estubllshed u mechunlsm for employees to
report to the Chulrmun through u communlcutlon llnk numed
66
'Chulrmun Llrect', concerns ubout unethlcul behuvlour und uny
vlolutlon of Croup vulues. Lmployees reportlng such lncldents
ure guurunteed complete confldentlullty und such complulnts
ure lnvestlguted und uddressed vlu u select commlttee under
the dlrectlon of the Chulrmun.
vhlle thls ls u key process wlthln 'lE to support und promote
honest und ethlcul behuvlour, thls course of uctlon ls to be
used where the systems und processes thut ure ulreudy ln
pluce do not, or ure not, cupuble of uddresslng the lssue ut
hund.
Ombudsperson
ln order to further strengthen our governunce structures und
encourugejfucllltute ull employees to llve by our vulues, un
ombudsperson wus uppolnted by 'lE ln zccjc. 1he
Ombudsperson wlll entertuln complulnts, from un employee
or u group of employees, of ulleged vlolutlons of the publlshed
Code of Conduct, when thut employee or group of employees
feel thut un ulleged vlolutlon hus not been uddressed
sutlsfuctorlly uslng the uvullublejexlstlng procedures und
processes.
1he flndlngs of the Ombudsperson und recommendutlons
urlslng there from shull be confldentlul und be communlcuted
by the Ombudsperson to the ChulrmunjCLO or the Senlor
lndependent Llrector, where uppllcuble, ln wrltlng und the
ombudsperson's duty wlll thereupon ceuse forthwlth.
1he ChulrmunjCLO or the Senlor lndependent Llrector, us the
cuse muy be, wlll pluce before the 8ourd
l. the declslon und the recommendutlons
ll. uctlon tuken bused on the recommendutlons
lll. where the ChulrmunjCLO or the Senlor lndependent
Llrector dlsugrees wlth uny or ull of the flndlngs und or the
recommendutlons thereon, the ureus of dlsugreement und
the reusons therefore.
ln sltuutlon (lll) the bourd shull conslder the ureus of
dlsugreement und declde on the wuy forwurd. 1he
ChulrmunjCLO or the Senlor lndependent Llrector ls expected
to tuke such steps us ure necessury to ensure thut the
complulnunt ls not vlctlmlsed for huvlng lnvoked thls process.
Young forum
vlth u vlew to broudenlng the top level communlcutlon wlth
the rest of the Croup employees, the Croup emburked on u
young forum conslstlng of the , youngest ludles und
gentlemen ut vurlous levels wlthln the Croup. 1he goul of thls
forum ls for these young representutlves to meet wlth the
Chulrmun, Leputy Chulrmun und the Croup llnunce Llrector ln
un lnformul settlng to dlscuss lssues of hurd und soft mutters
relutlng to the compuny. 1hls forum wus creuted us u pllot for
one yeur wlth the Presldent of Croup Eumun Resources und
Legul ulso uttendlng us und when necessury. 1he feedbuck
recelved up to dute hus been posltlve wlth certuln ldeus und
suggestlons ulreudy lmplemented und others belng looked ln
to ln u move to muke the Croup 'more thun just u work pluce'
for lts employees.
Compliance
1he bourd ls consclous of lts responslblllty to the shureholders,
government und soclety ln whlch lt operutes und ls commltted
to upholdlng the hlghest stundurds of ethlcul behuvlour ln
conductlng lts buslness. 1he bourd, through the Croup Legul
dlvlslon, the Croup llnunce dlvlslon und lts other operutlng
structures, strlves to ensure thut the compuny und ull of lts
subsldlurles und ussoclutes comply wlth the luws und
regulutlons of the countrles they operute ln.
1he 8ourd of Llrectors huve ulso tuken ull reusonuble steps ln
ensurlng thut ull flnunclul stutements ure prepured ln
uccordunce wlth the Srl Lunku Accountlng Stundurds und the
requlrements of the Colombo Stock Lxchunge und other
uppllcuble uuthorltles. 1he Srl Lunku Accountlng Stundurds, us
set by the lnstltute of Churtered Accountunts of Srl Lunku, ure
those, whlch govern the prepurutlon of the flnunclul
stutements. 1he lnternutlonul Accountlng Stundurd ls used ln
the rure lnstunce where u Srl Lunku Accountlng Stundurd does
not exlst. 1he bourd ls uwure of the growlng lmportunce of the
dlsclosure of crltlcul uccountlng pollcles us u purt of good
governunce und oplne thut there ure no lnstunces where the
use of such concept would huve u muterlul lmpuct on the
compuny's und the Croup's flnunclul performunce.
1he Croup ls ln compllunce wlth the requlrements of the
Compunles Act of zcc, und the new CSL llstlng rules revlsed
ln zcc.
Corporate responsibility
1he group recognlses thut lt exlsts not only to muxlmlse long
term shureholder vulue but ulso to look ufter the rlghts und
upproprlute clulms of muny nonshureholder groups such us
employees, consumers, cllents, suppllers, lenders,
envlronmentullsts, host communltles und governments. ve
recognlse thut they huve u stuke ln the outcome of the Croup's
uctlons und, uccordlngly, we wlll uccord to them un lncreuslng
stutus when muklng corporute declslons. More lmportuntly,
we ure becomlng more uwure of the lmpuct of our buslness
declslons on these stukeholder groups, the envlronment und
brouder communltles. 1he 'ohn leells Soclul Responslblllty
loundutlon, the vehlcle used by the Croup ln developlng und
lmplementlng the Croup's lnvolvement ln 'the communlty' hus
geured ltself to ensure thut the soclul progrummes of the
Croup ure conslstent wlth the prlnclples of sustulnuble
development.
Lust yeur, u Croup wlde lnltlutlve wus luunched to document
our munugement upprouch towurds sustulnublllty und pollcles
regurdlng the sume ln u number of ureus lncludlng Croup
sustulnublllty ltself, heulth und sufety, freedom of ussoclutlon,
corruptlon, humun rlghts, envlronment, und products und
servlces, umong others. 'lE releused lts flrst Sustulnublllty
Report lust yeur ln llne wlth the CRlC- guldellnes ut u C()
level dlsclosure. 1hls yeur, 'lE hus uchleved u 8() level
dlsclosure ln reportlng Sustulnublllty us per the CRl guldellnes.
lurthermore, u thlrdpurty ussurunce by Let Norske verltus AS
(LNv) hus been obtulned whlch vulldutes the uccurucy of the
dutu us per the AAccc ussurunce stundurd. 1he zccjc
sustulnublllty report ls ulso the flrst ln the country to obtuln u
''CRl level check'' whlch reufflrms the report's compllunce us
per the CRl guldellnes. 1he 8() level dlsclosure lndlcutes thut
the report uddresses u mlnlmum of zc core lndlcutors us set
out by CRl. lurther detulls regurdlng corporute sustulnublllty
ut 'lE cun be found ln the sepurutely enclosed Sustulnublllty
Report.
6,
SBARLBOLDLR RLLA1IONS
Constructive use of ACM
Shureholders wlll huve the opportunlty ut the forthcomlng
ACM, notlce of whlch hus been communlcuted to you, to put
questlons to the bourd und to the ChulrmunCLO of 'lE und
the chulrmen of the vurlous commlttees. 1he contents of thls
Annuul Report wlll enuble exlstlng und prospectlve
stukeholders to muke better lnformed declslons ln thelr
deullngs wlth the compuny.
ln generul, ull steps ure tuken to fucllltute the exerclse of
shureholder rlghts ut ACMs, lncludlng the recelpt of notlce of
the ACM und reluted documents wlthln the speclfled perlod,
votlng for the electlon of new dlrectors, new long term
lncentlve schemes or uny other lssue of muterlullty thut
requlres u shureholder resolutlon.
Dialogue with shareholders
1he compuny hus u welldeveloped lnvestor relutlons
progrumme to uddress the lnformutlon needs of lnvestment
lnstltutlons und unulysts regurdlng the compuny, lts strutegy,
performunce und competltlve posltlon. Clven the wlde
geogruphlc dlstrlbutlon of the compuny's current und
potentlul shureholders, thls progrumme lncludes regulur
roudshows to Aslu Puclflc, Lurope und the USA conducted by
the Leputy Chulrmun und the Eeud of lnvestor Relutlons.
Mutters dlscussed, und lssues rulsed, ut these meetlngs ure
brought to the uttentlon of the CLC undjor the bourd, us
upproprlute, und uddressed.
1he compuny, through lts lnvestor Relutlons dlvlslon
mulntulns un uctlve dlulogue wlth shureholders, potentlul
lnvestors, lnvestment bunks, stockbrokers und other
lnterested purtles. Any concerns rulsed by u shureholder ure
uddressed promptly ut the depurtment level und ure
forwurded, when necessury, to the CLC for conslderutlon und
udvlce. Anulysts reports ure clrculuted umong the CLC, us und
when uvulluble, und lts contents debuted.
1he SlL ls uvulluble to meet und or dlscuss wlth shureholders
regurdlng uny concernsjconfllcts thut urlse durlng the course
of the flnunclul yeur. ln the current yeur, there were ut leust z
lnstunces where the SlL hud such correspondence wlth mujor
shureholders.
Ma[or transactions
All muterlul und prlce sensltlve lnformutlon ubout the
compuny ls promptly communlcuted to the Colombo Stock
Lxchunge, where the shures of the compuny ure llsted, und
releused to the press und shureholders. 1he Croup ulso
publlshes three months ended, slx months ended und nlne
months ended lnterlm reports. 1he lnterlm und Annuul
Reports, contuln u Chulrmun's messuge whlch explulns, ut u
hlgh level, the performunce, buckground und rutlonule for ull
mujor trunsuctlons.
1BL IU1URL
'lE ls commltted to conductlng lts uffulrs wlth lntegrlty,
efflclency und fulrness to ull stukeholders. Our upprouch to
governunce ls of lntrospectlon, crltlcul revlew, contlnued
benchmurklng und lmprovement. 1hls, we belleve, ls not u
cholce us much us lt ls essentlul, us the globul lnvestor
wltnesses u chunge ln the munner ln whlch lnvestments ure
structured und evuluuted. As we seek to remuln u preferred
cholce for lnvestment, our key ureus of focus wlll remuln us
follows
Creutlng robust operutlng structures thut ure uble to
evolve to fuce the chullenges of our struteglc pluns und
contlnuous relnventlon of our portfollo
Mulntulnlng sound lnternul controls und u robust
frumework of rlsk munugement und mltlgutlon
Leveloplng the depth und reuch of our externul
stukeholder relutlonshlps, lmprovlng trunspurency und
efflclency ln lnformutlon flows und promotlng purtnershlp
und mutuul understundlng between munugement und
externul stukeholders
Stuylng ubreust of lnternutlonul best pructlces und
udoptlng those thut udd vulue to the Croup und lts
stukeholders, und
''Settlng the puce'' for u sustulnuble vulue uddltlon for our
stukeholders
68
Corporate Covernance check list
6
1he Remunerutlon Commlttee met three tlmes durlng the
yeur. 1he Commlttee lnteructed umong themselves us well us
wlth the executlve 8ourd members when the necesslty urose.
A report from the Remunerutlon Commlttee ls u stundlng
ugendu ltem ut the quurterly 8ourd Meetlngs und the pructlce
contlnued of the Chulrmun of the Commlttee reportlng on uny
mutters pertulnlng to the Commlttee. 1he 8ourd wus ulso kept
udvlsed of the work of the Commlttee ut tlmes by electronlc
mull.
1he Commlttee ensured thut the 8ourd complled wlth the
Compunles Act ln relutlon to dlrector remunerutlon especlully
the requlrements of Sectlon z6.
1he 'puy for performunce' scheme ls flrmly ln pluce und the
concept hus been well uccepted by ull stuff. All stuff, executlve
level und ubove, were not grunted sulury lncreuses ln 'uly zcc
due to the udverse economlc condltlons prevulllng und ln vlew
of the bleuk projectlons. Some selected munugement stuff,
however, were glven murket udjustments durlng the yeur ln
order to keep thelr remunerutlon ln llne wlth murket
condltlons und trends. lt ls u mutter of prlde thut ull the
uffected stuff worked wlth dedlcutlon und dlllgence desplte
the hurdshlp of not recelvlng u sulury lncreuse for the yeur und
the turnover of stuff, durlng thls perlod, wus negllglble.
Luter ln the yeur, lnsteud of gruntlng lncrements, u speclul
lncentlve puyment wus upproved und glven to ull stuff,
executlve level und ubove, except the executlve dlrectors, us
there hud been u slgnlflcunt lmprovement ln the flnunclul
sltuutlon und us u recognltlon of the efforts of the stuff who
hud helped to muke the turnuround posslble.
1he Commlttee met to exumlne the performunce of the Chlef
Lxecutlve und hls evuluutlon of the Lxecutlve Llrectors und
members of the Croup Lxecutlve Commlttee (CLC). 1hey were
evuluuted on flxed und meusuruble crlterlu whlch hud been
preugreed wlth them lndlvlduully.
1he Commlttee whllst ensurlng thut compensutlon structures
were ln llne wlth un overull Croup pollcy, ulso upproved, durlng
the yeur, speclflc rules ln relutlon to the Short 1erm lncentlve
(S1l) whereby the uffordublllty fuctor wus deflned for
purposes of compututlon.
1he Commlttee ulso met to conslder u recommendutlon to the
8ourd ln relutlon to u new Lmployee Shure Optlon Plun, le Plun
= und followlng the upprovul of the 8ourd, thls wus upproved
by the shureholders ut un Lxtruordlnury Cenerul Meetlng of
the compuny held on z Lecember zcc.
ln concluslon, l wlsh to thunk my colleugues, Leshumunyu
Levu Rodrlgo, und Mrs Slthle 1lruchelvum, for thelr vuluuble
contrlbutlon to the work of the commlttee und our secretury,
Llndu Sturllng.
Iranklyn Amerasinghe
Chulrmun
Remunerutlon Commlttee
z Vay zoo
Members
S S 1lruchelvum, P L Rodrlgo
COMMI11LL RLPOR1S
RLMUNLRA1ION COMMI11LL RLPOR1
1he Nomlnutlons Commlttee, us of -st Murch zcc, conslsted
of three lndependent dlrectors und the ChulrmunCLO of 'ohn
leells Eoldlngs PLC.
1he mundute of the commlttee remulns:
1o recommend to the bourd the process of selectlng the
Chulrmun und the Leputy Chulrmun
1o ldentlfy sultuble persons who could be consldered for
uppolntment to the bourd us nonexecutlve dlrectors
Muke recommendutlon on mutters referred to lt by the
bourd
Lurlng the perlod under revlew, the commlttee met once,
wlth ull members ln uttendunce.
1he commlttee contlnues to work closely wlth the bourd ln
revlewlng, regulurly, lts skllls needs bused on the objectlves
und strutegles set forth for the Croup for the comlng yeurs
und other emerglng needs bused on the dynumlc locul und
globul buslness envlronments. 1he commlttee oplnes thut the
skllls representutlon ln the bourd ls upproprlute for the
Croup's currently known needs.
1arun Das
Chulrmun
Nomlnutlons Commlttee
z Muy zcc
Members
S Lnderby, S S 1lruchelvum, S C Rutnuyuke
NOMINA1IONS COMMI11LL RLPOR1
1erms of reference, principal focus and medium of reporting
1he responslbllltles of the Commlttee flow from the Audlt
Commlttee Churter, upproved und udopted by the 8ourd. 1he
terms of reference comply wlth und go beyond the
requlrements of the Llstlng Rules of the Colombo Stock
Lxchunge (CSL).
1he Audlt Commlttee oversees the Compuny's flnunclul
reportlng process on behulf of the 8ourd of Llrectors. 1he
Compuny's munugement hus the prlmury responslblllty for the
flnunclul stutements, for mulntulnlng effectlve lnternul control
over flnunclul reportlng, und for ussesslng the effectlveness of
such control systems. ln fulfllllng lts overslght responslbllltles
over flnunclul reportlng, the Commlttee revlewed the
compuny und consollduted flnunclul stutements wlth the
munugement, exumlned the ucceptublllty of the uccountlng
prlnclples: the reusonubleness of slgnlflcunt estlmutes und
judgments, sultublllty of ussertlons mude und the udequucy of
dlsclosures ln the flnunclul stutements.
1he prlnclpul focus of the Commlttee wus to provlde
usslstunce to the 8ourd of Llrectors of 'ohn leells Eoldlngs
PLC ln fulfllllng thelr overslght responslblllty to the
shureholders, potentlul shureholders, the lnvestment
communlty und other stukeholders relutlng to
u. the lntegrlty of the Compuny's und Consollduted flnunclul
stutements
b. the effectlveness of the Compuny's lnternul controls over
flnunclul reportlng
c. the Compuny's compllunce wlth legul und regulutory
requlrements
d. the lndependent Lxternul Audltors' quullflcutlons,
performunce und lndependence
e. the performunce of the Compuny's Croup Rlsk & Control
Revlew (Croup R&CR) Llvlslon und of the flrms enguged to
curry out the lnternul uudlts of Croup entltles
ln fulfllllng lts purpose, lt ls the responslblllty of the Commlttee
to mulntuln free und open communlcutlon between the
Commlttees, lndependent Lxternul Audltors, the Croup R&CR
Llvlslon, flrms performlng lnternul uudlts und munugement of
the Compuny, und to determlne thut ull purtles ure uwure of
thelr responslbllltles.
1he ley flndlngs of the Audlt Commlttee ure communlcuted to
the 8ourd of Llrectors, through formul mlnutes und un orul
presentutlon.
Composition of the Audit Committee
1he composltlon of the Audlt Commlttee remulned ut four
lndependent nonexecutlve dlrectors durlng the yeur. 1he
commlttee druws on the expertlse of members wlth
buckgrounds ln flnunce, uudlt, luw, humun resource
munugement und regulutory lnstltutlons. ln keeplng wlth the
Culdellnes for 8est Pructlce on the Role of Audltors lssued
by the Securltles und Lxchunge Commlsslon of Srl Lunku, the
Chulrmun of the commlttee ls u Churtered Accountunt und
former Senlor Purtner of PrlcewuterhouseCoopers, Srl Lunku.
1he Eeud of Croup R&CR serves us Secretury to the Audlt
Commlttee.
Meetings
Slx meetlngs of the commlttee were held durlng the yeur. 1he
Chlef Lxecutlve Offlcer und the Chlef llnunclul Offlcer, both
executlve dlrectors, together wlth the Croup llnunclul
Controller uttend most purts of these meetlngs by lnvltutlon.
Other offlcluls ure lnvlted to uttend on u needs busls. 1he
Lxternul Audltors und lnternul Audltors ure present ut
meetlngs when mutters pertulnlng to thelr functlons come up
for conslderutlon.
key Activities
Review of Audit Committee Charter
1he Audlt Commlttee Churter wus revlewed und revlsed durlng
the yeur. 1he process udopted took lnto conslderutlon the
relevunt provlslons of the Compunles Act No , of zcc,, Llstlng
Rules of the Colombo Stock Lxchunge (CSL), Code of 8est
Pructlce on Corporute Covernunce lssued jolntly by the
Securltles und Lxchunge Commlsslon of Srl Lunku (SLC) und
the lnstltute of Churtered Accountunts of Srl Lunku (lCASL)
und the Code of 8est Pructlces on Audlt Commlttees lssued by
lCASL. 1he new Churter wus udopted by the 8ourd ln 'unuury
zcc.
Review of Croup Lxternal Auditors and Appointment of Croup
Lead Auditor
1he Compuny ln consultutlon wlth the lndependent Audlt
Commlttees of the subsldlurles llsted on the stock exchunge
lnvlted proposuls from nlne reputed uudlt flrms for the
provlslon of externul uudlt servlces to the Croup. 1he objectlve
lnterullu wus to ensure thut the Croup leud uudltor hud u
slgnlflcunt coveruge to uudlt the consollduted uccounts und to
posltlon the Croup towurds emerglng best pructlces.
After u thorough selectlon process by u 1echnlcul Lvuluutlon
Commlttee, Steerlng Commlttee und the 'lE Audlt
Commlttee (ln dlscusslon wlth the lndependent Audlt
Commlttees of quoted subsldlury compunles), the Audlt
Commlttee recommended to the 8ourd of Llrectors thut Lrnst
& Young be uppolnted us the LeudjConsolldutlon Audltor of
'ohn leells Croup for the next three flnunclul yeurs
commenclng zccj. lPMC lord, Rhodes, 1hornton & Co.,
und PrlcewuterhouseCoopers were uppolnted us Lxternul
Audltors for speclflc lndustry clusters of Srl Lunkun compunles
bused on thelr lndustry experlence und pust performunce.
Chunges were not mude to the uudlts of overseus subsldlury
compunles other thun for the Muldlvlun Resort hotels of the
Croup. 1he proposed chunges ure to tuke effect ufter
shureholder upprovul ut the next Annuul Cenerul Meetlng.
Oversight of Company and Consolidated Iinancial Statements
1he Commlttee revlewed wlth the lndependent externul
uudltors who ure responslble for expresslng un oplnlon on the
truth und fulrness of the uudlted flnunclul stutements und thelr
conformlty wlth Srl Lunku Accountlng Stundurds (SLAS), thelr
,c
AUDI1 COMMI11LL RLPOR1
COMMI11LL RLPOR1S
,
judgments us to the quullty, not just the ucceptublllty of the
uccountlng prlnclples of the Compuny und the Croup und such
other mutters us ure requlred to be dlscussed wlth the
Commlttee ln compllunce wlth Srl Lunku Audltlng Stundurd
z6c Communlcutlon of Audlt Mutters wlth those churged
wlth Covernunce.
1he commlttee obtulned quurterly declurutlons from the
lndustry groups und sectors conflrmlng flnunclul und
operutlonul compllunce wlth estubllshed Croup pollcles to
determlne thut the pollcles und procedures provlde
reusonuble ussurunce thut ull relevunt luws, rules und
regulutlons huve been complled wlth.
1he commlttee ulso dlscussed the Croup's reudlness for the
pendlng convergence of Srl Lunku Accountlng Stundurds
(SLAS) wlth lnternutlonul llnunclul Reportlng Stundurds
(llRS) und noted thut the Croup ls ln the process of currylng
out u gup unulysls to ldentlfy ureus requlrlng uctlon.
Independent Lxternal Auditors
1he commlttee held u speclul closed door meetlng wlth the
Lxternul Audltors wlthout the presence of uny Lxecutlve
Llrectors or offlcluls of the Croup, to ensure thut no
llmltutlons hud been pluced on thelr exumlnutlon und
reportlng und thut they recelved full cooperutlon from the
munugement und unhlndered uccess to records und
personnel.
1he commlttee revlewed the Lxternul Audltors lndependence
und the lnternul rules und guldellnes followed by them remuln
lndependent. 1he commlttee ulso ensured thut non uudlt
servlces provlded by the uudltors dld not lmpulr thelr
lndependence.
Risk and Control Review
1he Audlt Commlttee ls usslsted by the Croup R&CR Llvlslon,
whlch munuges the lnternul uudlt usslgnments of the Croup.
1he Eeud of Croup R&CR reports functlonully to the Chulrmun
of the Audlt Commlttee on uctlvltles und key control lssues.
lnternul uudlts ure outsourced to leudlng uudlt flrms ln llne
wlth un ugreed unnuul uudlt plun. Regulur follow up revlews
ure conducted by Croup R&CR to uscertuln thut uudlt
recommendutlons huve been ucted upon. Croup R&CR ulso
conducts speclul revlews us requested elther by the Audlt
Commlttee or by munugement.
1he lnternul Audlt, ln uddltlon to evuluutlng the efflcucy of
lnternul controls, revlews the uctlons tuken to control und
mltlgute operutlonul und buslness rlsks und monltors und
reports on the compllunce of Croup compunles wlth stututory
requlrements und Croup uccountlng und operutlonul pollcles.
lnternul uudlt reports provlde un overvlew of the rlsk proflle of
the buslness revlewed.
Subsidiary Company Audit Committees
Subsldlurles quoted on the CSL huve thelr own uudlt
commlttees comprlslng nonexecutlve dlrectors. Such uudlt
commlttees ure lndependent of the Audlt Commlttee of 'ohn
leells Eoldlngs PLC but mulntuln the stundurds ugreed wlth
'ohn leells Eoldlngs PLC Audlt Commlttee und muke uvulluble
to the 'lE Audlt Commlttee the mlnutes of thelr meetlngs.
Lxternal Audit
1he Lxternul Audltors huve dlrect communlcutlon chunnels
wlth the Audlt Commlttee und huve kept the commlttee
lnformed of mutters of slgnlflcunce thut urose durlng the
course of thelr uudlt.
1he Audlt Commlttee met wlth the Lxternul Audltors on -th
und zst Muy zcc to revlew und upprove the flnunclul
stutements before presentutlon to the 8ourd for udoptlon.
1he Audlt Commlttee hus proposed to the 8ourd of Llrectors
thut Lrnst & Young, Churtered Accountunts, be recommended
for reuppolntment us uudltors for the yeur endlng -st Murch
zc, ut the next Annuul Cenerul Meetlng.
Conclusion
1he uudlt commlttee wlshes to ucknowledge wlth thunks the
servlces rendered by the Croup Audltors, Lrnst & Young und
thelr efforts to meet 'lE requlrements und expectutlons.
1he contrlbutlon mude by Mr. lrunklyn Ameruslnghe, Mr.
Steven Lnderby und Ms. Slthle 1lruchelvum us members of the
commlttee ls ucknowledged wlth gruteful uppreclutlon. 1helr
professlonul expertlse wus lnvuluuble ln muklng the uudlt
commlttee functlon effectlve und useful.
Deva Rodrigo
Chulrmun
Audlt Commlttee
z Vay zoo
Members
l Ameruslnghe, S Lnderby, S S 1lruchelvum
lnternul rlsk munugement ls further complemented by the
Croup wlde stukeholder engugement process. Rlsk lssues
ldentlfled durlng the stukeholder engugement process ure
consldered und uddressed through the selectlon of u relevunt
lndlcutor found ln the Clobul Reportlng lnltlutlve (CRl)
frumework. Some of the lssues whlch ure not dlrectly
uddressed by the lndlcutors ure monltored through the
1he rlsk rutlngs, ufter tuklng lnto conslderutlon the
lmplementutlon progress mude on ldentlfled uctlon pluns und
other mltlgutlon uctlvltles und control meusures, ure detulled
below.
relevunt rlsk mutrlx. 1he rlsks mutrlces ure revlewed quurterly
wlth the emphusls on the outcome of elther mltlgutlon,
trunsfer, uvoldunce or ucceptunce of the rlsk bused on the rlsk
uppetlte.
1he contlnuous updutlng of the rlsk documentutlon ls co
ordlnuted centrully glvlng CLCjbourds of munugement vlrtuul
uccess to un overull plcture of the rlsk stutus ut buslness unlt,
sector, lndustry group und overull Croup level through the
documented reportlng chunnels.
key risk areas
'lE recognlses thut rlsk ls un lntegrul und unuvolduble
component of the buslness, und thut lt ls churucterlsed by
both threut und opportunlty. Lue to the llmltutlons lnherent ln
uny rlsk munugement system, the process ls deslgned to
munuge ruther thun ellmlnute rlsk. 1he Croup fosters rlsk
uwureness ln ull declslon muklng, und ls commltted to
munuglng ull rlsk ln u prouctlve und effectlve munner through
u slmple, but yet, well structured rlsk munugement
progrumme. 1o support thls commltment, rlsk ls unulysed
prlor to muklng lmportunt munugement declslons ut ull levels
wlthln the orgunlsutlon. Eowever, where the munugement
sees no costbeneflt ufter such unulysls, steps ure tuken to
wlthdruw from thut uctlvlty.
Rlsk munugement, un lntegrul purt of 'Sustulnublllty' ut 'lE
hus enubled the Croup to ldentlfy und munuge rlsks, hurness
opportunltles, udupt to the chunglng envlronment und udopt
long term und short term strutegles whlch llnk well wlth the
overull objectlves of the Croup.
1he lndlvlduul rlsk cutegorles ure founded on the success
fuctors whlch ure crltlcul for the lmplementutlon und
uttulnment of Croup objectlves. 1he rlsks ln the Croup ure
ldentlfled und unulysed uslng u unlversul rlsk reglster, whlch
over the yeurs hus been udupted to meet the Croup's speclflc
needs. 1he key operutlonul, struteglc und flnunclul rlsks
lnclude ureus such us socloeconomlc fuctors, competltlon,
lnternul processes, procurement, products, currency und
lnterest rute fluctuutlons, lnformutlon technology und humun
resources.
Luch rlsk event ls unulysed by u slmple formulu thut ldentlfles
posslble occurrence und further unulysed for the llkellhood
(probublllty) und outcome (severlty). 8used on these two
vurlubles, u vlew ls tuken on munugement of the subjected
rlsk. Rlsk munugement process wlthln the Croup ls now well
entrenched und ls supported by upproprlute documentutlon
und usslgnment of rlsk owners.
Rlsk munugement tukes pluce us u bottomup upprouch, us
deplcted below:
,z
RISk MANACLMLN1
,-
Political and economic confidence
llnunclul yeur zccjc zcc8jc zcc,jc8
Rlsk rutlng Medlum Elgh Ultru Elgh
Status and action plan
lollowlng the outcome of the presldentlul und the generul
electlons, the polltlcul stutus of the country ls consldered u
'low' rlsk. Eowever, the economlc confldence rlsk stutus ls stlll
consldered 'medlum to hlgh' due to u luck of structurul
vlslblllty ln the llnkuges between nutlonul economlc objectlves
und the lnstltutlons thut fucllltute und lmplement lt. 'lE ls u
key member of bodles such us Chumber of Commerce, NCLL
und other vurlous trude ussoclutlons, und through such bodles,
ls worklng wlth the relevunt uuthorltles ln uddresslng the
uforementloned lssues. 'lE ulso works wlth lts lnternutlonul
purtners ln projectlng Srl Lunku us u country wlth lnvestment
potentlul.
Lnabling infrastructure availability
Rlsk rutlng Elgh Elgh Ultru Elgh
vlth the end of the wur, lt ls most welcomlng to note thut the
government hus mude slgnlflcunt progress ln lnfrustructure
development such us rouds, brldges und power plunts whlch
creute un enubllng envlronment towurds economlc growth.
1hough the government hus ldentlfled tourlsm lndustry
development us one of lts struteglc prlorltles, the luck of buslc
lnfrustructure such us hotels, efflclent modes of
trunsportutlon such us hlghwuys thut enuble fuster truvel,
modernlsed rullwuy systems, und uvullublllty of domestlc ulr
truvel optlons muy prove to be llmltlng fuctors ln thls regurd.
'lE wlll contlnue to lobby the uuthorltles for progress ln
selected lnfrustructure development through the Chumbers,
trude ussoclutlons, other lobby groups und vlu dlrect dlulogue.
8rand control and protection threats
Rlsk rutlng Moderute Moderute Moderute
1he pursult of 'sustulnuble development', purtlculurly ln the
lust two yeurs, hus resulted ln the enhuncement of the 'lE
brund through medlu exposure recelved on the groups'
flnunclul performunce, governunce structure und CSR
uctlvltles. Lfforts ure monltored through trlple bottom llne
reportlng vlu sustulnublllty lndlcutors. Senlor Munugement's
purtlclputlon ut vurlous foru, und the lmpurtlng of thelr
knowledge und skllls to the soclety ut lurge huve ulso
contrlbuted lmmensely towurds brund bulldlng. Eowever,
surveys huve reveuled thut there ls brund confuslon wlthln
some lndustry groups ut 'lE und steps ure belng tuken to
uddress thls concern.
Internal operational process efficiencies
1hls ls un ureu where much work hus been done. Cross
functlonul teums comprlslng of employees und consultunts
thut ure subject mutter experts huve revlewed und
strengthened the compuny's lnformutlon systems und
buslness processes ln keeplng wlth the lutest regulutory
requlrements. Lnvlronments so lmplemented enuble buslness
users to bulunce between performunce und control.
lurthermore, the Croup provldes the user the opportunlty
through these structured processes to munuge und mltlgute
rlsk, muklng 'ohn leells buslnesses more competltlve ln the
murket.
Lnvironmental, health and safety concerns
8y encompusslng the sustulnublllty lnltlutlves whlch lnclude
CRl lndlcutors, the Croup hus set up formul processes for
estubllshlng pollcles und for monltorlng performunce
perlodlcully regurdlng the rlsk ussocluted wlth Croup's
envlronmentul, heulth und sufety (LES) concerns. 1hese
concerns ure uddressed through u system of reports whlch
conflrm compllunce wlth uppllcuble luws und regulutlons,
compuny performunce stundurds, und other externul
requlrements. 'lE employees ure trulned to hundle
emergencles through structured flre drllls und evucuutlon
pluns, und other procedures thut ure ln pluce. lurthermore,
the LES tusk force hus set un objectlve to lmplement OESAS
8ccc wlthln the Croup on un lncrementul busls.
Legal and regulatory uncertainties
Rlsk rutlng Elgh Ultru Elgh Elgh
1he ubsence of u stuble legul und regulutory frumework whlch
buslness users cun depend on, hus creuted u 'hlgh' rlsk
sltuutlon ln ureus of new lnvestments und reluted uspects. ln
recent tlmes, there huve been frequent chunges to the rules
whllst pluy wus ln progress und lnternul processes und other
trlgger mechunlsms ure ln pluce to prouctlvely ldentlfy such
sltuutlons ln order to uddress them ln u tlmely munner. 'lE ls
worklng wlth estubllshed foru such us lndustryjtechnlcul
ussoclutlons und the Chumbers, ln urglng the government to
ensure stublllty ln the legul und regulutory frumework. 'udglng
by the uctlons ulreudy mude by the government, we ure
confldent thut there wlll be progress ln thls ureu.
Iinancial exposures
1he centrullsed treusury und flnunce functlons of the 'lE
Croup ure responslble for the munugement of the Croup's
flnunclul rlsks together wlth lts llquldlty und flnunclng
requlrements. 1reusury und flnunce operutlons ure conducted
wlthln u frumework of pollcles und guldellnes upproved und
monltored by the CLC. 1he flnunce und treusury frumework ls
,o
revlewed regulurly und ure flne tuned to meet the Croup's
current und untlclputed operutlng needs. 1hls frumework ulso
fucllltutes the executlon of bourdupproved strutegles for
lnterest, currency und llquldlty munugement.
Information technology dependency
'lE operutlons ure lncreuslngly rellunt on lnformutlon
systems. 1he lncreused centrullsutlon of l1 systems ullows
more dlsclpllned und unlform enforcement of securlty
meusures ucross operutlng compunles. Eowever, lt ulso
meuns thut the lmpuct of uny lnformutlon securlty lncldents
wlll be much lurger requlrlng strlct monltorlng. 'lE Croup
compunles und the centrullsed l1 functlon, comply wlth u strlct
lnformutlon securlty pollcy und upproprlute securlty
sufeguurds huve been lmplemented und ure contlnuously
monltored to ensure the securlty, prlvucy, und confldentlullty
of the l1 systems. Plunnlng for worsecuse scenurlos, such us
complete system fullures, by huvlng dlsuster recovery
procedures ln pluce, huve enubled the Croup to focus on the
methods und speed of recovery requlred whlch ure lmperutlve
ln such lnstunces. 8uslness contlnulty pluns (8CP) huve been
looked ut groupwlde und some deflclencles huve been
ldentlfled. 1hese ure belng uddressed.
Buman resources availability
1he growth of 'lE depends on lts ublllty to recrult und
retuln employees wlth relevunt expertlse und experlence
throughout ull levels of the compuny. Elgh cullbre employees
ure uttructed to 'lE by u number of fuctors lncludlng worklng
envlronment, cureer opportunltles, lndlvlduul contrlbutlon to
growth, recognltlon, rewurd und beneflt plun. Muny lnltlutlves
huve been tuken to bulld brund uwureness umongst
employees und would be employees. 'lE hus u formul unnuul
employee performunce upprulsul procedure whlch ls llnked to
the puyment of performunce llnked bonuses und the uwurd of
longterm lncentlves ln the form of employee shure
optlon plun.
Stakeholder promise
8y conductlng stukeholder engugements on sustulnublllty
lnltlutlves, we huve mulntulned frequent und open dlulogue
wlth our vurlous stukeholders to understund the soclul,
economlcul und envlronmentul lssues, und to be uwure of thelr
expectutlons us we seek to provlde new vulues to soclety
through our vurlous buslness uctlvltles. ve wlll contlnue
to develop und evolve our CSR uctlvltles und sustulnublllty
progrummes to develop our buslnesses bused on sutlsfled
customers, optlmlsutlon of corporute vulues und the
fulfllment of the expectutlons of our shureholders.
Sustulnublllty, together wlth the rlsk munugement process hus
glven our Croup the lnformutlon lt needs to muke better, more
lnformed declslons on ureus of operutlonul, struteglc,
envlronmentul, soclul, und economlc nuture. 8y lncorporutlng
sustulnublllty to rlsk munugement, the Croup hus enubled the
ldentlflcutlon of the rlsk und the cruftlng of responses to rlsk
thut mlght otherwlse be mlssed und thls hus provlded
opportunltles thut enhunce economlc performunce whlle
sustulnlng shureholder vulue.
IINANCIAL
INIORMA1ION
,6
1he dlrectors huve pleusure ln presentlng the -st unnuul report of
your compuny together wlth the uudlted flnunclul stutements of
'ohn leells Eoldlngs PLC ('lE), und the uudlted consollduted
flnunclul stutements of the group for the yeur ended - Murch zcc.
PRINCIPAL AC1IvI1ILS
'ohn leells Eoldlngs PLC, the group's holdlng compuny, munuges
u portfollo of holdlngs conslstlng of u runge of dlverse buslness
operutlons, whlch together constltute the 'ohn leells group, und
provldes functlon bused servlces to lts subsldlurles und ussoclutes.
1he compunles wlthln the group und lts buslness uctlvltles ure
descrlbed ln the group dlrectory under the supplementury
lnformutlon sectlon of the unnuul report.
RLvILWOI 8USINLSS SLCMLN1S
A revlew of the flnunclul und operutlonul performunce und future
buslness developments of the group, sectors, und lts buslness
unlts ure descrlbed ln the munugement dlscusslon und unulysls
sectlon of the unnuul report. 1hese reports together wlth the
uudlted flnunclul stutements reflect the stute of the uffulrs of the
compuny und the group.
Segment wlse contrlbutlon to group revenue, results, ussets und
llubllltles ls provlded ln note -- to the flnunclul stutements.
ln Muy zcc, the compuny further purchused 68,== shures of
Unlon Assurunce PLC for u conslderutlon of Rs.,c mllllon,
lncreuslng lts stuke to 8c.6.
ln Lecember zcc, 'lEucqulred z.6 of the shure cupltul of Centrul
Eospltul (Prlvute) Llmlted for u conslderutlon of Rs. cc mllllon.
ln Murch zcc, 'lE dlvested =c mllllon of lts rlghts ln 'ohn leells
Eotels PLC (lEL). 1he proceeds from the trunsuctlon wus
Rs.,= mllllon. 1he compuny subscrlbed for the entlrety of lts
remulnlng rlghts umountlng to 8, mllllon shures ln lEL und
further subscrlbed to uddltlonul rlghts of , mllllon shures for u
totul vulue of Rs..= bllllon. lollowlng the subscrlptlon of these
rlghts, 'lE now owns 8z. of lEL.
ln Murch zcc, 'lEexerclsed lts rlghts to convert the wurrunts held
ln Nutlons 1rust 8unk PLC upon lts explrutlon. 8,-8=,,-- shure
wurrunts were exerclsed for u totul conslderutlon of Rs.z=z mllllon.
ln Murch zcc, lltch Rutlngs ufflrmed the Nutlonul Longterm
rutlng for 'lE ut 'AAA(lku)'. lltch ulso ufflrmed the Nutlonul Long
term rutlng on 'lE's senlor unsecured notes ut 'AAA(lku)'. 'lE's
rutlng reflected the dlverslfled nuture of lts buslnesses, the
currently strong flnunclul proflle drlven ln purt by lts hlgh cush
posltlon, contlnued strong operutlng cush generutlng ublllty und
the domlnunt murket shure of lts subsldlurles.
RLvLNUL
Revenue generuted by the compuny umounted to Rs.= mn
(zcc Rs. =8, mn), whllst group revenue umounted to Rs. ,,8c
mn (zcc Rs. ,cz- mn). Contrlbutlon to group revenue, from
the dlfferent buslness segments ls provlded ln note z- to the
flnunclul stutements.
RLSUL1S ANDAPPROPRIA1IONS
1he proflt ufter tux of the holdlng compuny wus Rs. ,66 mn (zcc
Rs.,-6- mn) whllst the group proflt uttrlbutuble to equlty holders
of the purent for the yeur wus Rs.=,zc mn (zcc Rs.,,-z mn).
Results of the compuny und of the group ure glven ln the lncome
stutement.
1he flnul dlvldend of Rs..cc per shure for the flnunclul yeur
zcc8jc (zcc8 Rs..cc) wus puld on c 'une zcc. llrst lnterlm
dlvldend of Rs..cc per shure for the yeur zccjc (zcc Rs..cc)
wus puld on -c November zcc. A second lnterlm dlvldend for
zccjc of Rs..cc per shure wus puld on , Aprll zcc (zcc
Rs..cc). 1hls results ln u totul dlvldend puyout of Rs.-.cc per shure
(zcc Rs.-.cc) umountlng to Rs.,8 mn (zcc Rs.,88- mn).
Llvldend per shure hus been computed bused on the umount of
dlvldends recognlsed us dlstrlbutlon to the equlty holders durlng
the perlod.
As requlred by Sectlon =6 (z) of the Compunles Act No , of zcc,,
the 8ourd of dlrectors hus conflrmed thut the compuny sutlsfles
the solvency test ln uccordunce wlth Sectlon =, of the Compunles
Act No , of zcc,, und hus obtulned u certlflcute from the uudltors,
prlor to declurlng u flnul dlvldend of Rs..cc per shure for thls yeur.
1he flnul dlvldend wlll be puld on c 'une zcc to those
shureholders on the reglster us on - Muy zcc.
Letulled descrlptlon of the results und upproprlutlons ure glven
below.
|or tne year enJeJ , Varcn zoo zcc
ln s.'ooos Restuted
Proflt eurned before lnterest, ufter provldlng
for ull known llubllltles, bud &
doubtful debts und depreclutlon on
property, plunt & equlpment <,z|;,o68 ,=,c8
lnterest puld (,|;o,<6) (,6=,-)
|,866,z z,86,z6
Proflt on sule of lnvestments a,;;6 ,c6-,,
Chunge ln fulr vulue of lnvestment property c,=,-
Proflt uccrulng to the compuny
und subsldlurles |,8,688 -,=c,8-
Shure of results of ussoclutes z,<<<,86; z,-c,z,
Profit before tax 6,<|;,<<< 6,z,zc
Provlslon for tuxutlon lncludlng
deferred tux (8<,zao) (,-z6,=c)
Profit after tax <,<<z,|< ,6,6=c
Proflt uttrlbutuble to mlnorlty
shureholders (|<o,8za) (z-z,-6)
Amount uvulluble to the group's
shureholders <,zo,a ,,-z,-c
Repurchuse of ordlnury shures (z,z=,ccc)
Cther udjustments |,;8< ,,,c=,
8ulunce brought forwurd from the
prevlous yeur ,a<,|o 8,,=,,c
Amount uvulluble for upproprlutlon a,6zo,<8< ,z,,c
st lnterlm dlvldend of Rs. .cc per shure
(zcc Rs..cc) puld out of
dlvldend recelved (6z,8|a) (6-6,c8=)
znd lnterlm dlvldend of Rs. .cc per shure
(zcc Rs. .cc) puld out of
dlvldend recelved (6,a<<) (6,-=)
|,|88,z6 c,cz6,66z
llnul dlvldend declured of
Rs. .cc per shure (zcc Rs. .cc)
to be puld out of dlvldend recelved* (6,a;|) (6,-=-)
8alance to be carried forward next year z,;68,8z| ,=,-c
ANNUAL RLPOR1 OI 1BL 8OARDOI DIRLC1ORS
ANNUAL RLPOR1 OI 1BL 8OARD OI DIRLC1ORS
,,
* 1ne jinal JiviJenJ recommenJeJ jor tnis jinancial year nas not
been recogniseJ as at tne balance sneet Jate in compliance witn
SLAS z (eviseJ zoo,) Lvents ajter tne 8alance Sneet ate.
ACCOUN1INCPOLICILS
Letulls of uccountlng pollcles huve been dlscussed ln note of the
flnunclul stutements. 1here huve been no chunges ln the
uccountlng pollcles udopted by the group durlng the yeur under
revlew, other thun pollcy on softwure.
DONA1IONS
1otul donutlons mude by the compuny und group durlng the yeur
umounted to Rs.c. mn (zcc Rs.c. mn) und Rs. mn (zcc
Rs.- mn), respectlvely. Cf these, the donutlons to upproved
churltles were Rs.c mn (zcc Rs.c. mn) ut compuny und
Rs.=.- mn (zcc Rs.-. mn) ut group. 1he umounts do not
lnclude contrlbutlons on uccount of corporute soclul responslblllty
(CSR) lnltlutlves.
1he 'ohn leells Soclul Responslblllty loundutlon, whlch operutes
wlth funds contrlbuted by euch of the compunles ln the group,
hundles most of the group's CSR lnltlutlves und uctlvltles. 1he
loundutlon munuges u runge of progrummes thut underpln lts key
prlnclple of uctlng responslbly ln ull ureus of buslness to brlng
ubout sustulnuble development. 1he CSR lnltlutlves, lncludlng
completed und ongolng projects, ure detulled ln the sustulnublllty
report ln the unnuul report.
ln quuntlfylng the group's contrlbutlon to churltles, no uccount
hus been tuken of 'lnhouse' costs or munugement tlme.
PROPLR1Y, PLAN1 ANDLOUIPMLN1
1he book vulue of property, plunt und equlpment us ut the
bulunce sheet dute umounted to Rs.z mn (zcc Rs.zz8 mn) und
Rs.z,8 mn (zcc Rs.z,6= mn) for the compuny und group
respectlvely.
Cupltul expendlture for the compuny und group umounted to
Rs.=.z mn (zcc Rs.6- mn) und Rs.,,8z mn (zcc Rs.-,=cz mn),
respectlvely.
Letulls of property, plunt und equlpment und thelr movements
ure glven ln note z to the flnunclul stutements.
MARkL1 vALUL OI PROPLR1ILS
All lund und bulldlngs owned by group compunles were revulued
ln flnunclul yeur zcc,jc8, wlth the followlng exceptlons:
'ohn leells Eoldlngs PLC, 'ohn leells PLC, Mucklnnon und leells
llnunclul Servlces Ltd, leells Reultors Ltd, vhlttull 8ousteud Ltd,
'l Propertles (Pvt) Ltd und vlruwllu vulk lnn Ltd were revulued ln
flnunclul yeur zcc8jc.
1rlnco vulk lnn Ltd, lnternutlonul 1ourlsts und Eotellers Ltd,
1rlnco Eollduy Resorts (Pvt) Ltd und Unlon Assurunce PLC were
revulued ln the current flnunclul yeur.
vuluutlons were currled out by P 8 lulugulgederu, Churtered
vuluutlon Surveyor, C ' Sumunusenu, lncorporuted vuluer, Mjs A Y
Lunlel & Son, lncorporuted vuluer, R C vljeslnghe, Consultunt
vuluer und Assesor, Euleel Couse, lncorporuted vuluer und E R de
Sllvu, Churtered vuluutlon Surveyor (Ul).
All propertles clusslfled us lnvestment property were vulued ln
uccordunce wlth the requlrements of SLAS c (zcc=). 1he currylng
vulue of lnvestment property of the compuny und group
umounted to Rs.8 mn (zcc Rs.8 mn) und Rs.z,-- mn
(zcc Rs.z,-z mn) respectlvely. 1he dlrectors huve declded to
retuln the fulr vulues of lnvestment property recognlsed
prevlously us ut the bulunce sheet dute.
lnvestment propertles of buslness unlts, when slgnlflcuntly
occupled by group compunles, ure clusslfled us property, plunt
und equlpment ln the consollduted flnunclul stutements ln
compllunce wlth SLAS c (zcc=).
Letulls of the revuluutlon of property, plunt und equlpment und
lnvestment property ure provlded ln notes z. und . to the
flnunclul stutements.
Letulls of group propertles us ut - Murch zcc ure dlsclosed ln the
group reul estute portfollo sectlon of the unnuul report.
INvLS1MLN1S
lnvestments of the compuny und the group ln subsldlurles,
ussoclutes, jolnt ventures und other externul equlty
lnvestments umounted to Rs.-c,6z mn (zcc Rs.z,,,- mn) und
Rs.=c,,8 mn (zcc Rs.6,,6z mn), respectlvely.
Letulled descrlptlon of the long term lnvestments held us ut the
bulunce sheet dute, ure glven ln note 6 to the flnunclul stutements.
S1A1LDCAPI1AL
1he uuthorlsed cupltul und pur vulue concept ln relutlon to shure
cupltul were ubollshed by the Compunles Act No c, of zcc,. 1he
totul umounts recelved by the compuny ln respect of the lssue of
shures ure now referred to us stuted cupltul. 1he totul stuted
cupltul of the compuny us ut - Murch zcc wus Rs.z-,-zz mn
(zcc Rs.zz,=z= mn) us glven ln note z to the flnunclul
stutements.
Cptlons ln respect of 8,zc,6-6 shures (zcc 8=8,- shures)
were exerclsed durlng the yeur under the employee shure optlon
plun, for u totul conslderutlon of Rs.,, mn (zcc Rs.6 mn).
SBARL INIORMA1ION
1he dlstrlbutlon und composltlon of shureholders und the
lnformutlon relutlng to eurnlngs, dlvldend, net ussets, murket
vulue per shure und shure trudlng ls glven ln the shure lnformutlon
sectlon of the unnuul report.
Clven below, us uddltlonul dlsclosure, ure the 'ohn leells
Eoldlng's 8ourd of dlrectors' shureholdlngs ln group compunles us
ut - Murch zcc.
1ohn keells Boldings PLC (1kB)
S C Rutnuyuke -,c-,c (zcc -,zz,,,,)
A L Cunewurdene -,c-,8-c (zcc -,=z,,668)
C S A Cunesekeru* NjA (zcc ,=z,=,)
' R l Pelrls =,,c (zcc 8,6z8)
,8
L l C Ameruslnghe ,-6 (zcc ,-6)
1 Lus Nll (zcc Nll)
S Lnderby Nll (zcc Nll)
P L Rodrlgo Nll (zcc Nll)
S S 1lruchelvum Nll (zcc Nll)
Cptlons uvulluble under the employee shure optlon plun of 'lE.
S C Rutnuyuke ,,,8,c (zcc ,,=,,8)
A L Cunewurdene ,==,88z (zcc ,=,-,6z)
C S A Cunesekeru* NjA (zcc ,c,,)
' R l Pelrls ,-z6,c= (zcc ,c,,)
Asian Botels and Properties PLC
S C Rutnuyuke c,ccc (zcc c,ccc)
Ceylon Cold Stores PLC
S C Rutnuyuke ,6c (zcc ,6c)
A L Cunewurdene ,,ccc (zcc ,,ccc)
C S A Cunesekeru* NjA (zcc -,8z)
' R l Pelrls =c (zcc =c)
1ohn keells Botels PLC
S C Rutnuyuke ==c,- (zcc 68,8)
A L Cunewurdene ,,8c6 (zcc 6z,8c)
C S A Cunesekeru* NjA (zcc ,c,c--)
keells Iood Products PLC
S C Rutnuyuke ,z=c (zcc ,z=c)
C S A Cunesekeru* NjA (zcc z,8-z)
Nations 1rust 8ank PLC
A L Cunewurdene ,6=z,zz (zcc -,z=-,666)
C S A Cunesekeru* NjA (zcc -,6z6)
vurrunts held ut Nutlons 1rust 8unk PLC.
A L Cunewurdene
vurrunts zcc Nll (zcc z,=,z=6)
vurrunts zc ,c=,,6z, (zcc ,c=,,6z,)
C S A Cunesekeru*
vurrunts zcc NjA (zcc c6)
vurrunts zc NjA (zcc =-)
1ea Smallholder Iactories PLC
C S A Cunesekeru* NjA (zcc ,ccc)
1rans Asia Botels PLC
S C Rutnuyuke cc (zcc cc)
A L Cunewurdene cc (zcc cc)
C S A Cunesekeru* NjA (zcc cc)
' R l Pelrls cc (zcc cc)
Union Assurance PLC
A L Cunewurdene -,,6 (zcc -,,6)
* Note: C S A Cunesekeru reslgned wlth effect from -c 'une zcc.
MA1OR SBARLBOLDLRS
Letulls of the twenty lurgest shureholders of the compuny und the
percentuges held by euch of them ure dlsclosed ln the shure
lnformutlon sectlon of the unnuul report.
RLSLRvLS
1otul reserves us ut - Murch zcc for the compuny und group
umounted to Rs.,-= mn (zcc Rs.6,=z8 mn) und Rs.z6,=c mn
(zcc Rs.zz,8 mn), respectlvely.
1he movement und composltlon of the cupltul und revenue
reserves ls dlsclosed ln the stutement of chunges ln equlty.
DIRLC1ORS
1he 8ourd of dlrectors of the compuny us ut - Murch zcc und
thelr brlef proflles ure glven ln the 8ourd of dlrectors sectlon of
the unnuul report.
As unnounced on 6 Aprll zcc, C S A Cunusekeru reslgned from
the 8ourd wlth effect from -c 'une zcc, exerclslng hls optlon for
eurly retlrement on reuchlng the uge of == yeurs.
ln uccordunce wlth Artlcle 8 of the Artlcles of Assoclutlon of the
compuny, ' R l Pelrls und A L Cunewurdene retlre by rotutlon und
belng ellglble offer themselves for reelectlon.
1he Compuny hus ulso recelved notlce of the resolutlon to
propose the reelectlon of 1 Lus who ls over ,c yeurs of uge und
who retlres ln terms of sectlon zc of the Compunles Act. 1he
resolutlon proposes thut the uge llmlt stlpuluted ln Sectlon zc of
the Compunles Act No , of zcc, shull not upply to 1 Lus who ls
over ,c yeurs und thut he be reelected u dlrector of the
compuny.
1he group dlrectory detulls the numes of persons holdlng offlce us
dlrectors of the compuny und ull lts subsldlury und ussoclute
compunles, us ut - Murch zcc und the numes of persons who
were uppolnted or who ceused to hold offlce us dlrectors durlng
the perlod.
8OARDCOMMI11LLS
1he followlng members serve on the 8ourd, Audlt, Remunerutlon
und Nomlnutlon commlttees:
Audit Committee
P L Rodrlgo Chulrmun
L l C Ameruslnghe
S Lnderby
S S 1lruchelvum
1he report of the uudlt commlttee ls glven under the 8ourd
commlttee reports sectlon of the unnuul report.
L l C Ameruslnghe Chulrmun
P L Rodrlgo
S S 1lruchelvum
1he report of the remunerutlon commlttee ls glven under the
8ourd commlttee reports sectlon of the unnuul report und the
remunerutlon pollcy ls glven ln the corporute governunce report.
Nominations Committee
1 Lus Chulrmun
S Lnderby
S C Rutnuyuke
S S 1lruchelvum
1he report of the nomlnutlons commlttee ls glven under the 8ourd
commlttee reports sectlon of the unnuul report.
IN1LRLS1S RLCIS1LR
1he Compuny hus mulntulned un lnterests reglster us
contempluted by the Compunles Act No , of zcc,.
ln compllunce wlth the requlrements of the Compunles Act No. ,
of zcc,, thls unnuul report ulso contulns purtlculurs of entrles
mude ln the lnterests reglsters of subsldlurles whlch ure publlc
compunles or prlvute compunles whlch huve not dlspensed wlth
the requlrement to mulntuln un lnterests reglster us permltted by
Sectlon -c of the Compunles Act No , of zcc,.
Particulars of entries in the 1kBinterests register
Interests in contracts
1he dlrectors huve ull mude u generul dlsclosure to the 8ourd of
dlrectors us permltted by Sectlon z (z) of the Compunles Act No
, of zcc, und no uddltlonul lnterests huve been dlsclosed by uny
dlrector.
a) Share dealings:
NAML OI DIRLC1OR NA1URL OI SBARL DLALINC
S C Rutnuyuke Sule of zcc,ccc shures
-,6,6z shure optlons
exerclsed under LSCP
A L Cunewurdene -,6,6z shure optlons
C S A Cunesekeru Sule of zcc,ccc shures
(Reslgned w.e.f. -c 'une zcc)
' R l Pelrls Sule of =c,ccc shures
-,6,6z shure optlons
b) Indemnities and remuneration
1he 8ourd upproved the puyment of remunerutlon of the
executlve dlrectors of the compuny, numely, S C Rutnuyuke,
ChulrmunjCLC, A L Cunewurdene, Leputy Chulrmunj
Presldent, C S A Cunusekeru, Presldent (reslgned wlth
effect from -c 'une zcc), und ' R l Pelrls, Croup llnunce
Llrector for the perlod Aprll zcc to - Murch zcc
comprlslng of:
short term vurluble lncentlve bused on lndlvlduul
performunce, orgunlzutlon performunce und role
responslblllty bused on the results of the flnunclul yeur
zcc8jzcc: und
long term lncentlve ln the nuture of LSCP ln 'ohn leells
Eoldlngs PLC, dependunt on the uforesuld performunce
rutlng, orgunlzutlonul rutlng und role responslblllty
us recommended by the remunerutlon commlttee huvlng
conducted murket surveys, spoken to experts und huvlng tuken
lnto conslderutlon the speclflc munugement complexltles
ussocluted wlth the 'ohn leells group und ln keeplng wlth the
group remunerutlon pollcy.
Particulars of entries in interests registers of subsidiaries
Asian Botels &Properties PLC
Indemnities and remuneration
1he 8ourd upproved the puyment to S C Rutnuyuke,
A L Cunewurdene, ' R l Pelrls, 8 M Amurusekeru,
Col. l Sumuruwlckrumu, A R Cunusekuru, S l C Senunuyuke und
S A 'uyusekuru, Non Lxecutlve Llrectors, of fees us recommended
by the remunerutlon commlttee of 'ohn leells Eoldlngs PLC
(belng the holdlng compuny of Aslun Eotels & Propertles PLC und
us permltted by the Rules of the Colombo Stock Lxchunge)
commensurute wlth the murket und complexltles of the buslness
of the Compuny, und sums puyuble to dlrectors nomlnuted by
'ohn leells Eoldlngs PLC were remltted to 'ohn leells Eoldlngs
PLC ruther thun to lndlvlduul dlrectors.
1he 8ourd upproved the puyment of remunerutlon to the
executlve dlrector of the compuny, R ' lurunurujuh, comprlslng of
long term lncentlve ln the nuture of LSCP ln 'ohn leells Eoldlngs
PLC, dependunt on the performunce rutlng, orgunlzutlonul rutlng
und role responslblllty us recommended by the remunerutlon
commlttee of 'ohn leells Eoldlngs PLC, the holdlng compuny of
Aslun Eotels & Propertles PLC ln keeplng wlth the group
remunerutlon pollcy.
executlve dlrector of the compuny, S Rujendru, comprlslng of:
zcc8jzcc, puld ln 'uly zcc:
u one off ex grutlu puyment mude ln Lecember zcc (there
wus no unnuul lncrement uwurded ln zcc): und
Eoldlngs PLC dependunt on the uforesuld performunce
us recommended by the remunerutlon commlttee of 'ohn leells
Eoldlngs PLC, the holdlng compuny of Aslun Eotels & Propertles
PLC ln keeplng wlth the group remunerutlon pollcy.
Ceylon Cold Stores PLC
executlve dlrector of the compuny, ' R Cunurutne, comprlslng of:
,
8c
Eoldlngs PLC, the holdlng compuny of Ceylon Cold Stores PLC, ln
keeplng wlth the group remunerutlon pollcy.
1ohn keells PLC
1he 8ourd upproved the puyment of remunerutlon to the executlve
dlrector of the compuny, L L Rumunuyuke, comprlslng of:
Eoldlngs PLC, the holdlng compuny of 'ohn leells PLC, ln keeplng
wlth the group remunerutlon pollcy.
1ohn keells Botels PLC
Share dealings:
S C Rutnuyuke Purchuse of -=,, shures
Sule of ,=,ccc shures und
purchuse of zc,6c8 shures
by Mrs M v Rutnuyuke
A L Cunewurdene Sule of 8,=cc shures und
purchuse of zc,8z6 shures
by Mrs C A Cunewurdene
M A Cmur Purchuse of ,ccc shures by
Phoenlx ventures (Pvt)
Llmlted
keells Botel Management Services Ltd.
1he 8ourd upproved the puyment of remunerutlon to the executlve
dlrector of the compuny, ' L P lehelpunnulu, comprlslng of:
Eoldlngs PLC, the holdlng compuny of leells Eotel Munugement
Servlces Llmlted, ln keeplng wlth the group remunerutlon pollcy.
1rans Asia Botels PLC
1he 8ourd upproved the puyment to S C Rutnuyuke,
A L Cunewurdene, ' R l Pelrls, L S ' Pelpolu, N L Coonerutne,
R L Nunuyukkuru und A R Cunusekuru, Non Lxecutlve Llrectors, of
revlsed dlrectors fees us recommended by the remunerutlon
commlttee of 'ohn leells Eoldlngs PLC (belng the ultlmute
purent of 1runs Aslu Eotels PLC und us permltted by the Rules of
the Colombo Stock Lxchunge) commensurute wlth the murket
und complexltles of the buslness of the Compuny, und sums
puyuble to dlrectors nomlnuted by 'ohn leells Eoldlngs PLC,
were remltted to 'ohn leells Eoldlngs PLC ruther thun to
lndlvlduul dlrectors.
Union Assurance PLC
a.) Share Dealings
A l Cunurutne Purchuse of ,6cc shures
b.) Indemnities and remuneration
1he executlve dlrectors remunerutlon wus estubllshed
wlthln u frumework upproved by the 8ourds remunerutlon
commlttee. 1he Llrectors ure of the oplnlon thut the
frumework ussures upproprluteness of remunerutlon und
fulrness for the compuny. 1he remunerutlon of the Non
Lxecutlve Llrectors wus determlned uccordlng to scules of
puyment declded upon by the 8ourd prevlously.
Walkers 1ours Ltd.
1he 8ourd upproved puyment of remunerutlon to the executlve
dlrector of the compuny, v Leelunundu, comprlslng of:
rutlng, orgunlzutlonul rutlng und role responslblllty.
Eoldlngs PLC, the holdlng compuny of vulkers 1ours Llmlted, ln
keeplng wlth the group remunerutlon pollcy.
DIRLC1ORS' RLMUNLRA1ION
Letulls of the remunerutlon und other beneflts recelved by the
dlrectors ure set out ln note z of the flnunclul stutements.
8
LMPLOYLL SBARL OP1IONPLAN
At the beglnnlng of the yeur, the employee shure optlon plun
conslsted of the thlrd und fourth pluns upproved by the
shureholders on z8 'une zcc und - Lecember zcc, respectlvely.
Under the thlrd plun, the compuny wus uuthorlsed to lssue up to
= of the lssued shure cupltul wlthln un unnuul llmlt of up to z of
nontrunsferuble cull shure optlons und the optlons grunted
under thls plun huve to be exerclsed wlthln flve yeurs of such
grunt. Under the fourth plun, the compuny wus uuthorlsed to
lssue nontrunsferuble cull shure optlons, not exceedlng ln
uggregute c.8= of the shures ln lssue of the compuny us ut the
dute of gruntlng the uwurd und huve to be exerclsed wlthln flve
yeurs of such grunt. Cn z Lecember zcc, the shureholders
upproved u flfth plun, whereby the compuny could lssue non
trunsferuble cull shure optlons, not exceedlng of the shures ln
lssue of the compuny us ut the dute of gruntlng the uwurd und
huve to be exerclsed wlthln flve yeurs of such grunt.
1he optlons outstundlng for the znd und -rd uwurds of plun -, plun
und plun = ure vulld for exerclse us ut - Murch zcc.
1he hlghest, lowest und the closlng prlces of the shure recorded
durlng the yeur were Rs 8.,=, Rs 6z.=c und Rs 8.cc
respectlvely.
Compuny hus not grunted uny fundlng to employees to exerclse
optlons.
Letulls of the optlons grunted, optlons exerclsed, the grunt prlce,
optlons cuncelled or lupsed und outstundlng us ut the dute of the
dlrectors' report huve been tubuluted below.
Directors' declarations
1he Llrectors declure thut:
u) the compuny complled wlth ull uppllcuble luws und
regulutlons ln conductlng lts buslness
b) the dlrectors huve declured ull muterlul lnterests ln
contructs lnvolvlng the compuny und refrulned from votlng
on mutters ln whlch they were muterlully lnterested
c) the compuny hus mude ull endeuvours to ensure the
equltuble treutment of shureholders
d) the buslness ls u golng concern wlth supportlng
ussumptlons or quullflcutlons us necessury, und
e) huve conducted u revlew of lnternul controls coverlng
flnunclul, operutlonul und compllunce controls und rlsk
munugement und huve obtulned u reusonuble ussurunce of
thelr effectlveness und successful udherence herewlth
1he corporute governunce report ls glven under the proflle und
dlscusslon sectlon of the unnuul report
SUS1AINA8ILI1Y
1he Croup pursues lts buslness gouls under u stukeholder model
of buslness governunce. As per thls model, the Croup hus tuken
speclflc steps, purtlculurly, ln ensurlng the conservutlon of lts
nuturul resources und envlronment. 1hese steps huve been
encupsuluted ln u groupwlde sustulnublllty progrumme whlch
wus luunched lust yeur und hus slnce progressed slgnlflcuntly. 1he
sepurute Sustulnublllty Report detulls such progress. Let Norske
verltus AS (LNv) hus conflrmed thut the Sustulnublllty Report
meets the generul content und quullty requlrements of the Clobul
Reportlng lnltlutlve (CRl) C- und thut lt hus met the Appllcutlon
Level 8 of the CRl requlrements. 1he zccjc Sustulnublllty
report hus ulso recelved u CRl level check und thls reufflrms the
reports compllunce wlth the CRl guldellnes.
LMPLOYMLN1
1he group hus un equul opportunlty pollcy und these prlnclples ure
enshrlned ln speclflc selectlon, trulnlng, development und
promotlon pollcles, ensurlng thut ull declslons ure bused on merlt.
1he group pructlces equullty of opportunlty for ull employees
LMPLOYLL SBARL OP1IONPLAN(LSOP)
LMPLOYLL SBARL OP1ION PLAN AS A1 |S1 MARCB zoo
Date of Shares Lxpiry Option Shares ** Lapsedj Current
grant granted date grant price ad[usted exercised cancelled outstanding price **
PLAN |
Awurd z.c-.zcc= =,=c-,8=c z8.c-.zcc -6.cc ,,6,8z- ,c,6,-z 6,c,- z.,z
Awurd z c.c.zcc6 6,6=,=,= c.c.zc =,.z= c,-c,8= ,z=,c, ,-,-8, ,,,-,== zc.,
Awurd - z8.c=.zcc, c,==,c6z z,.c=.zcz 6.cc c,==,c6z z86,zc ,c68,zc ,6,czz 6.cc
zz,,cc,8, -c,=,, c,6-,=6 -,c=c,68 6,-=,,,
PLAN a
z=.c-.zcc8 =,c=,= z.c-.zc- zc.cc =,c=,= z--,-== zz,,c ,6c,zc zc.cc
PLAN <
,.z.zcc 6,z6,6c 6.z.zc 6c.z= 6,z6,6c z6,cz= 6,cc,-= 6c.z=
1otal |a,z||,|z az,|z,6a o,8;z,a |,z6|,68 z;,6,<|z
** Ad[usted for bonus issues and right issues
8z
lrrespectlve of ethnlc orlgln, rellglon, polltlcul oplnlon, gender,
murltul stutus or physlcul dlsublllty. Lmployee ownershlp ln the
compuny ls fucllltuted through the employee shure optlon plun.
Letulls of the group's humun resource lnltlutlves ure detulled ln
the employees' sectlon of the sustulnublllty report.
1he number of persons employed by the compuny und group us ut
- Murch zcc wus - (zcc z) und c,88= (zcc c,=c),
respectlvely.
1here huve been no muterlul lssues pertulnlng to employees und
lndustrlul relutlons of the compuny.
SUPPLILR POLICY
1he Croup upplles un overull pollcy of ugreelng und cleurly
communlcutlng terms of puyment us purt of the commerclul
ugreements negotluted wlth suppllers, und endeuvors to puy for
ull ltems properly churged ln uccordunce wlth these ugreed terms.
As ut - Murch zcc the trude und other puyubles of the compuny
und group umounted to Rs.-- mn (zcc Rs.-- mn) und
Rs.8,86, mn (zcc8 Rs.6,=c= mn), respectlvely.
LNvIRONMLN1AL PRO1LC1ION
1he group complles wlth the relevunt envlronmentul luws,
regulutlons und endeuvors to comply wlth best pructlces
uppllcuble ln the country of operutlon. A summury of selected
group uctlvltles ln the ubove ureu ls contulned ln the sustulnublllty
report.
RLSLARCBANDDLvLLOPMLN1
1he group hus un uctlve upprouch to reseurch und development
und recognlses the contrlbutlon thut lt cun muke to the group's
operutlons. Slgnlflcunt expendlture hus tuken pluce over the yeurs
und substuntlul efforts wlll contlnue to be mude to lntroduce new
products und processes und develop exlstlng products und
processes to lmprove operutlonul efflclency.
S1A1U1ORY PAYMLN1S
1he Llrectors conflrm thut to the best of thelr knowledge, ull
tuxes, dutles und levles puyuble by the compuny und lts
subsldlurles, ull contrlbutlons, levles und tuxes puyuble on behulf
of, und ln respect of the employees of the compuny und lts
subsldlurles, und ull other known stututory dues us were due und
puyuble by the compuny und lts subsldlurles us ut the bulunce
sheet dute huve been puld or, where relevunt provlded for, except
us speclfled ln note -= to the flnunclul stutements, coverlng
contlngent llubllltles.
RISk MANACLMLN1 ANDIN1LRNAL CON1ROL
1he 8ourd conflrms thut there ls un ongolng process for
ldentlfylng, evuluutlng und munuglng uny slgnlflcunt rlsks fuced by
the group. Rlsk ussessment und evuluutlon for euch buslness unlt
tukes pluce us un lntegrul purt of the unnuul struteglc plunnlng
cycle und the prlnclple rlsks und mltlgutlng uctlons ln pluce ure
revlewed regulurly by the 8ourd und the uudlt commlttee. 1he
8ourd, through the lnvolvement of the rlsk revlew und control
depurtment tukes steps to guln ussurunce on the effectlveness of
control systems ln pluce. 1he uudlt commlttee recelves reports on
the results of lnternul control revlews und the heud of the group
rlsk revlew und control depurtment hus dlrect uccess to the
Chulrmun of the uudlt commlttee.
1he rlsk munugement report ls glven under the munugement
dlscusslon und unulysls sectlon of the unnuul report
LvLN1S OCCURRINCAI1LR 1BL 8ALANCL SBLL1 DA1L
1here huve been no events subsequent to the bulunce sheet dute,
whlch would huve uny muterlul effect on the compuny or on the
group other thun those dlsclosed ln note c to the flnunclul
stutements.
COINCCONCLRN
1he Llrectors ure sutlsfled thut the compuny, lts subsldlurles und
ussoclutes, huve udequute resources to contlnue ln operutlonul
exlstence for the foreseeuble future, to justlfy udoptlng the golng
concern busls ln prepurlng these flnunclul stutements.
AUDI1ORS
Messrs Lrnst & Young, Churtered Accountunts, ure wllllng to
contlnue us Audltors of the compuny, und u resolutlon proposlng
thelr reuppolntment wlll be tubled ut the unnuul generul meetlng.
1he Audltors Report ls found ln the flnunclul reports sectlon of the
unnuul report.
1he uudlt commlttee revlews the uppolntment of the uudltor, lts
effectlveness, lts lndependence und lts relutlonshlp wlth the
group, lncludlng the level of uudlt und nonuudlt fees puld to the
uudltor.
1he group works wlth = flrms of Churtered Accountunts ucross the
group, numely, Lrnst & Young, lPMC lord Rhodes 1hornton und
Co, PrlcewuterhouseCoopers, Someswurun 'uyuwlckrumu und Co.
und Leloltte Eusklns & Sells. Letulls of uudlt fees ure set out ln
note z of the flnunclul stutements. 1he uudltors do not huve uny
relutlonshlp (other thun thut of un uudltor) wlth the compuny or
uny of lts subsldlurles.
lurther detulls on the work of the uudltor und the uudlt
commlttee ure set out ln the uudlt commlttee report.
Lurlng the yeur, wlth u vlew to udopt current und emerglng best
pructlces ln the sourclng of externul uudlts, wlthln the greuter goul
of enhunclng our Corporute Covernunce, u revlew of externul
uudltors und the scoplng of thelr servlces wus undertuken ucross
the group.
A request for proposul (RlP) process wus sought us purt of the
'lE corporute governunce process to entertuln proposuls from
reputed uudlt flrms wlth lnternutlonul ufflllutlonjrepresentutlon ln
order to select u group uudltor huvlng sufflclent uudlt coveruge.
8lds were recelved on the busls of sepurute technlcul und flnunclul
proposuls und evuluuted by u technlcul evuluutlon commlttee
8-
(1LC). 1he recommendutlons of the 1LC were revlewed by u
steerlng commlttee comprlslng of u mujorlty of lndependent, non
executlve dlrectors representlng 'ohn leells Eoldlngs PLC, und
other llsted compunles ln the 'ohn leells Croup. 1he
recommendutlon of the steerlng commlttee wus further revlewed
by the uudlt commlttee of 'ohn leells Eoldlngs PLC.
As u result of such evuluutlon, chunges ln externul uudltors huve
been recommended to shureholders ln some of the group
compunles fromthe flnunclul yeur zccj, to be effectlve fromthe
dute of thelr respectlve unnuul generul meetlngs.
ANNUAL RLPOR1
1he 8ourd of dlrectors upproved the consollduted flnunclul
stutements on z Muy zcc. 1he upproprlute number of coples of
thls report wlll be submltted to the Colombo Stock Lxchunge und
to the Srl Lunku Accountlng und Audltlng Stundurds Monltorlng
8ourd on - Muy zcc.
ANNUAL CLNLRAL MLL1INC
1he unnuul generul meetlng wlll be held ut the lnstltute of
Churtered Accountunts of Srl Lunku, -c, Mululusekeru Muwuthu,
Colombo ,, on Monduy, z8 'une zcc ut c.cc u.m. 1he notlce of
meetlng uppeurs ln the supplementury lnformutlon sectlon of the
unnuul report.
1hls unnuul report ls slgned for und on behulf of the 8ourd of
dlrectors.
8y Crder of the 8ourd
irector irector
keells Consultants Ltd.
Secretaries
z Vay zoo
8
1he responslblllty of the Llrectors ln relutlon to the flnunclul
stutements ls set out ln the followlng stutement. 1he
responslblllty of the uudltors, ln relutlon to the flnunclul
stutements prepured ln uccordunce wlth the provlslons of the
Compunles Act No , of zcc,, ls set out ln the Report of the
Audltors.
1he flnunclul stutements comprlse of:
u bulunce sheet, whlch presents u true und fulr vlew of the
stute of uffulrs of the compuny und lts subsldlurles us ut the
end of the flnunclul yeur: und
un lncome stutement of the compuny und lts subsldlurles,
whlch presents u true und fulr vlew of the proflt und loss of
the compuny und lts subsldlurles for the flnunclul yeur.
1he dlrectors ure requlred to conflrmthut the flnunclul stutements
huve been prepured:
uslng upproprlute uccountlng pollces whlch huve been
selected und upplled ln u conslstent munner, und muterlul
depurtures, lf uny, huve been dlsclosed und explulned: und
presented ln uccordunce wlth the Srl Lunku Accountlng
Stundurds: und thut
reusonuble und prudent judgments und estlmutes huve
been mude so thut the form und substunce of trunsuctlons
ure properly reflected: und
provldes the lnformutlon requlred by und otherwlse comply
wlth the Compunles Act und the Llstlng Rules of the
Colombo Stock Lxchunge.
1he dlrectors ure ulso requlred to ensure thut the compuny hus
udequute resources to contlnue ln operutlon to justlfy upplylng
the golng concern busls ln prepurlng these flnunclul stutements.
lurther, the dlrectors huve u responslblllty to ensure thut the
compuny mulntulns sufflclent uccountlng records to dlsclose, wlth
reusonuble uccurucy the flnunclul posltlon of the compuny und of
the group.
1he dlrectors ure ulso responslble for tuklng reusonuble steps to
sufeguurd the ussets of the compuny und of the group und ln thls
regurd to glve proper conslderutlon to the estubllshment of
upproprlute lnternul control systems wlth u vlew to preventlng
und detectlng fruud und other lrregulurltles
1he dlrectors ure requlred to prepure the flnunclul stutements und
to provlde the uudltors wlth every opportunlty to tuke whutever
steps und undertuke whutever lnspectlons thut muy be
consldered belng upproprlute to enuble them to glve thelr uudlt
oplnlon.
lurther, us requlred by Sectlon =6 (z) of the Compunles Act No ,
of zcc,, the 8ourd of dlrectors huve conflrmed thut the compuny,
bused on the lnformutlon uvulluble, sutlsfles the solvency test
lmmedlutely ufter the dlstrlbutlon, ln uccordunce wlth Sectlon =,
of the Compunles Act no , of zcc,, und huve obtulned u certlflcute
from the uudltors, prlor to declurlng u flnul dlvldend of Rs .cc per
shure for thls yeur, to be puld on c 'une zcc.
1he dlrectors ure of the vlew thut they huve dlschurged thelr
responslbllltles us set out ln thls stutement.
Compliance Report
1he dlrectors conflrm thut to the best of thelr knowledge, ull
tuxes, dutles und levles puyuble by the compuny und lts
subsldlurles, ull contrlbutlons, levles und tuxes puyuble on behulf
of und ln respect of the employees of the compuny und lts
subsldlurles, und ull other known stututory dues us were due und
puyuble by the compuny und lts subsldlurles us ut the bulunce
sheet dute huve been puld, or where relevunt provlded for, except
us speclfled ln Note -= to the flnunclul stutements coverlng
contlngent llubllltles
8y order of the 8ourd
keells Consultants Ltd
Secretaries
z Vay zoo
1BL S1A1LMLN1 OI DIRLC1ORS' RLSPONSI8ILI1Y
8=
INDLPLNDLN1 AUDI1ORS RLPOR1
1O1BL SBARLBOLDLRS OI 1OBNkLLLLS BOLDINCS PLC
Report on the Iinancial Statements
ve huve uudlted the uccompunylng flnunclul stutements of 'ohn
leells Eoldlngs PLC (Compuny), the consollduted flnunclul
stutements of the Compuny und lts subsldlurles whlch comprlse
the bulunce sheets us ut - Murch zcc, und the lncome
stutements, stutements of chunges ln equlty und cush flow
stutements for the yeur then ended, und u summury of slgnlflcunt
uccountlng pollcles und other explunutory notes.
Managements Responsibility for the Iinancial Statements
Munugement ls responslble for the prepurutlon und fulr
presentutlon of these flnunclul stutements ln uccordunce wlth Srl
Lunku Accountlng Stundurds. 1hls responslblllty lncludes:
deslgnlng, lmplementlng und mulntulnlng lnternul control
relevunt to the prepurutlon und fulr presentutlon of flnunclul
stutements thut ure free from muterlul mlsstutement, whether
due to fruud or error: selectlng und upplylng upproprlute
uccountlng pollcles: und muklng uccountlng estlmutes thut ure
reusonuble ln the clrcumstunces.
Scope of Audit and 8asis of Opinion
Cur responslblllty ls to express un oplnlon on these flnunclul
stutements bused on our uudlt. ve conducted our uudlt ln
uccordunce wlth Srl Lunku Audltlng Stundurds. 1hose stundurds
requlre thut we plun und perform the uudlt to obtuln reusonuble
ussurunce whether the flnunclul stutements ure free from
muterlul mlsstutement.
An uudlt lncludes exumlnlng, on u test busls, evldence supportlng
the umounts und dlsclosures ln the flnunclul stutements. An uudlt
ulso lncludes ussesslng the uccountlng prlnclples used und
slgnlflcunt estlmutes mude by munugement, us well us evuluutlng
the overull flnunclul stutement presentutlon.
ve huve obtulned ull the lnformutlon und explunutlons whlch to
the best of our knowledge und bellef were necessury for the
purposes of our uudlt. ve therefore belleve thut our uudlt
provldes u reusonuble busls for our oplnlon.
Opinion
ln our oplnlon, so fur us uppeurs from our exumlnutlon, the
Compuny mulntulned proper uccountlng records for the yeur
ended - Murch zcc und the flnunclul stutements glve u true und
fulr vlewof the Compunys stute of uffulrs us ut - Murch zcc und
lts proflt und cush flows for the yeur then ended ln uccordunce
wlth Srl Lunku Accountlng Stundurds.
ln our oplnlon, the consollduted flnunclul stutements glve u true
und fulr vlew of the stute of uffulrs us ut - Murch zcc und the
proflt und cush flows for the yeur then ended, ln uccordunce wlth
Srl Lunku Accountlng Stundurds, of the Compuny und lts
subsldlurles deult wlth thereby, so fur us concerns the
shureholders of the Compuny.
Report on Other Legal and Regulatory Requirements
ln our oplnlon, these flnunclul stutements ulso comply wlth the
requlrements of Sectlon =(z) und Sectlons =-(z) to =-(,) of the
Compunles Act No. c, of zcc,.
z Vay zoo
colombo.
RLPOR1 OI 1BL AUDI1ORS
86
Croup Company
As at ,st Varcn Note zoo zoo zoo zoo
ln s.'ooos estateJ
ASSL1S
Noncurrent assets
Property, plunt und equlpment z z,88,66a z,6=,zz ,6< zz,,8,,
Leusehold property - a,<;6,68; ,,,=,,z
lnvestment property z,||a,a;< z,-z,c= 8,ooo 8,ccc
lntunglble ussets = z,<<6,a< z,66,,8 |;,a<o
lnvestments ln subsldlurles und jolnt ventures 6 <,< =,= z,;;z,8z ,6-,,,
lnvestments ln ussoclutes 6 a,|o,86 z,,,6 ,o,8 ,,=,z,
Cther lnvestments 6 8,a<,z6 8,,=,6c- ;,<o; 8,z
Leferred tux ussets , 8z,z<z ,,86
Cther noncurrent ussets 8 ,;za,;; ,,,ccc 6o,o; 8,,c
6a,oz,a<; 6-,z,6cc |z,o;o,6<z z,6,8,6-
Current assets
lnventorles z,z<,o66 z,z=,-c- ;;8 8c
lnvestments held for sule 6 ,z -,cc
1rude und other recelvubles c ,||,;;; ,cz,,6=- 8a8,zz| ,,,,8-
Amounts due from reluted purtles - zz,88 zz,z <|z,88a zcc,=6c
Short term lnvestments ,|oo,<6 =,-,,-, o,;;,6< ,-,-6-
Cush ln hund und ut bunk |,o|,6a z,c=z,6z 8z,<a 6,,8
|a,<6<,8<z z8,,8,6- ,6az,ooa z,-,zz
1otal assets 8,6<8,|o z,c,c6- a|,;z,6<6 z,c,,
LOUI1Y AND LIA8ILI1ILS
Lquity attributable to equity holders of the parent
Stuted cupltul z z|,|zz,aoo zz,=z=,c8 z|,|zz,aoo zz,=z=,c8
Cupltul reserves - ;,<;|,6z ,,-6,,z-
Revenue reserves 8,|6,z< =,=,6z= ,|a<,o6a 6,=z,,6,
a,8|z,z; =,=c6,=6 |z,66;,a6a z,c=z,,==
Minority interest 6,az,<z ,6c,-c
1otal equity <6,z6,;8| =c,66,,6= |z,66;,a6a z,c=z,,==
Noncurrent liabilities
lnsurunce provlslons = z,a<,<;6 ,cz=,6
Nonlnterest beurlng borrowlngs 6 8,ooo z,ccc
lnterest beurlng borrowlngs , o,<|,a<o ,,-, 6,8ao,ooo c,8z,=-
Leferred tux llubllltles , ;8,;az ,,,,z-6
Lmployee beneflt llubllltles 8 ,oa,|< =6,, z,6|o z,-=8
Cther deferred llubllltles a,6<< =,6,
Cther noncurrent llubllltles z6,ao z,,=,6
z<,<a;,z z,,,,6= 6,|z,6|o c,=,,=
Current liabilities
1rude und other puyubles zc 8,86;,o;8 6,=c=,,, |a|,az6 --,-
Amounts due to reluted purtles - |,6| 6,, |,oo =,6
lncome tux llubllltles z a<a,zz =,-6z
Short term borrowlngs zz <o,ooo c,ccc
Current portlon of lnterest beurlng borrowlngs , a,68,;6 ,8,,= |,|<,a| ,,,,6=c
Llvldend puyuble 6,a<< 6,a<<
8unk overdrufts z,<;6,|a| ,z,8z6 ,8; ,-c=,6-
6,8a,|o; -,8,-,6, a,z,<6z z,8z,z
1otal equity and liabilities 8,6<8,|o z,c,c6- a|,;z,6<6 z,c,,
l certlfy thut the flnunclul stutements comply wlth the requlrements of the Compunles Act No. , of zcc,.
M.1.S. Ra[akariar
croup |inancial controller
1he 8ourd of dlrectors ls responslble for the prepurutlon und presentutlon of these flnunclul stutements.
S.C. Ratnayake 1.R.I. Peiris
cnairman croup |inance irector
1he uccountlng pollcles und notes us set out ln puges z to -z form un lntegrul purt of these flnunclul stutements.
z Vay zoo
8ALANCL SBLL1
8,
Croup Company
|or tne year enJeJ ,st Varcn Note zoo zoo zoo zoo
ln s.'ooos estateJ
Revenue z- a;,8o,ooa ,czz,=zc <aa,| =8,,-z
Cost of sules (|6,a,oo;) (-,z,=6) (z|o,<6) (zzz,-=6)
Cross profit ,o6<,; ,8c,=6 |a,o|; -6,=6
Llvldend lncome z a|,< =-,,6= |,<;|,<;6 z,8z,68=
Cther operutlng lncome z= <,ozo,;a< -,,-=,cz z,zo<,o8 ,c,6,
Llstrlbutlon expenses (z,o66,6) (,=8,,8c6)
Admlnlstrutlve expenses (;,z8,za) (6,c=c,z-,) (6<a,z) (66,)
Cther operutlng expenses z6 (,a|,86a) (,-8z,8c) (aa,8;) (c,z-z)
llnunce expenses z, (,|;o,<6) (,6=,-) (;6,6z) (-,cc)
Chunge ln fulr vulue of lnvestment property c,=,- 66,8z
Shure of results of ussoclutes z,<<<,86; z,-c,z,
Proflt on sule of noncurrent lnvestments z8 ,cz=,,, ,zc,8c-
Profit before tax z 6,<|;,<<< 6,z,zc a,6;;,66; ,zc,-c=
1ux expense -c (8<,zao) (,-z6,=c) (6,6o8) (=,,c--)
Profit for the year <,<<z,|< ,6,6=c a,66,o< ,-6-,z,z
Attributable to:
Lqulty holders of the purent <,zo,a ,,-z,-c
Mlnorlty lnterest |<o,8za z-z,-6
<,<<z,|< ,6,6=c
Rs. Rs.
Larnings per share
8uslc - 8.a< ,.=z
Llluted - 8.|8 ,.=z
Dividend per share -z |.oo -.cc
llgures ln bruckets lndlcute deductlons.
z Vay zoo
INCOML S1A1LMLN1
88
Croup Company
ln s.'ooos estateJ
CASB ILOWS IROM OPLRA1INC AC1IvI1ILS
Proflt before worklng cupltul chunges A |,6a8,<86 -,,8,c a,6|,a8a ,8,,8-
(lncreuse)jdecreuse ln lnventorles (ao,;6|) ,z,6,cc, |z
(lncreuse)jdecreuse ln recelvubles und prepuyments (;;<,z;;) ,8,,668 (<|,oa6) (z,c=)
(lncreuse)jdecreuse ln other noncurrent ussets (8<,o<) (c,c6,) za,66o (,c=z)
lncreusej(decreuse) ln credltors und uccruuls z,zz<,868 (,=z,z) (<o,z8a) ,-,z=-
lncreusej(decreuse) ln lnsurunce provlslon ,,6z ,-,=-,
Cash generated from operations 6,8|,|z< -,z-,-c a,o8z,8a6 -,8z,=
lnterest recelved z,a6,|| z,z6=,66-
llnunce expenses puld (,|;o,<6) (,6=,-) (;6,6z) (-,cc)
Llvldend recelved z,|,6o ,cc,=88
1ux puld (66,86) (,-=,--,) (6z,z|8) (=6,c,=)
Crutulty puld (o;,oa) (z,6c) (,aaz) (-,,)
Net cash flow from operating activities ,;a,a; ,6,z= |,z8a,<|; z,8c,,6
CASB ILOWS IROMj(USLD IN) INvLS1INC AC1IvI1ILS
Purchuse und constructlon of property, plunt und equlpment (,;8,<a) (,,6c6) (<,z6) (6z,-,)
Addltlon to lntunglble ussets (;o,86) (z-,c) (|o,6o|)
Addltlon to lnvestment property (<,a6o)
Acqulsltlon of subsldlury ,c,8,z
Acqulsltlon of ussoclute (,ooo,ooo) (oo,ooo)
lncreuse ln lnterest ln subsldlurles (8|,8<|) (,6,-8) (z,za,a6) (z,czc,c)
lncreuse ln lnterest ln ussoclutes (|;6,oo) (z,,z8,6c) (z<,<;z) (z,,z8,6)
Proceeds from sule of property, plunt und equlpment 8a,;oz 88,6, 6,z;o ,8
Proceeds from sule of noncurrent lnvestments ,=,z6 a6,a8| ,=,z6
Proceeds from sule of rlghts ln subsldlurles ;<o,;< ;<o,;<
Proceeds from sule of lnvestment held for sule 8a,6|z ;z,aoa
Proceeds from lnsurunce clulm on property, plunt & equlpment |o,ooo
(Purchuse) j dlsposul of other lnvestments (net) ;|,a| (68,66) a;,;z; (,-,=8,)
Crunts recelved for lnvestlng uctlvltles -=
Net cash flow from j (used in) investing activities (z,o|,;a) (-,,,8==) (,a88,a;8) (-,66,=)
CASB ILOWS IROMj(USLD IN) IINANCINC AC1IvI1ILS
Proceeds from lssue of shures ;;,zz 6c,8 ;;,zz 6c,8
Repurchuse of ordlnury shures (z,z=,ccc) (z,z=,ccc)
Proceeds from mlnorlty on lssue of rlghts ln subsldlurles ,6z,z|; =,c
Llrect cost on shure lssue (||,6;a)
Llvldend puld to equlty holders of purent (,zza,8;) (,88-,z) (,zza,8;) (,88-,z)
Llvldend puld to mlnorlty shureholders (zao,oa) (zz-,6=,)
Proceeds from long term borrowlngs 68a,ooo 8,-8c,=c 8,c,c,=c
Repuyment of long term borrowlngs (z,|;,8o) (,z8,c6) (,;z,ooo) (-cc,ccc)
Proceeds fromj(repuyment of) short term borrowlngs (net) 6o,ooo (z8=,ccc)
Net cash flow fromj(used in) financing activities (6|6,z|<) z,--,,== (,<8,8<) -,6=-,-
NL1 INCRLASL j (DLCRLASL) IN CASB AND CASB LOUIvALLN1S ;,o6a,aa z,=c6,= ;,6a z,8,,,=
CASB AND CASB LOUIvALLN1S A1 1BL 8LCINNINC z,a,oa8 ,=8,zc o,az,a8o 6,6=,6z
CASB AND CASB LOUIvALLN1S A1 1BL LND ,<6|,a8 ,66,-= o,||,6aa ,=-,,z
ANALYSIS OI CASB AND CASB LOUIvALLN1S
Iavourable balances
Short term lnvestments ,o|<,<6 =,6,888 o,;;,6< ,-,-6-
Lxchunge loss j (guln) lncluded ln short term lnvestments o,;z (6c=,z6) o,;z (6c=,z6)
Cush ln hund und ut bunk |,o|,6a z,c=z,6z 8z,<a 6,,8
Unfavourable balances
8unk overdrufts (z,<;6,|a|) (,z,8z6) (,8;) (,-c=,6-)
1otal cash and cash equivalents as previously reported ,<6|,a8 ,66,-= o,||,6aa ,=-,,z
Lffect of exchunge rute chunges z8,,=
Cash and cash equivalents restated ,<6|,a8 ,6-,z-c o,||,6aa ,=-,,z
llgures ln bruckets lndlcute deductlons.
CASBILOWS1A1LMLN1
CASB ILOW S1A1LMLN1
8
Croup Company
|or tne year enJeJ ,st Varcn zoo zoo zoo zoo
ln s.'ooos estateJ
A Profit before working capital changes
Proflt before tux 6,<|;,<<< 6,z,zc a,6;;,66; ,zc,-c=
Adjustments for:
lnterest lncome (z,a6,||) (z,z6=,66-)
Llvldend lncome (a|,<) (=-,,6=)
llnunce expenses ,|;o,<6 ,6=,- ;6,6z -,cc
Chunge ln fulr vulue of lnvestment property (c,=,-) (66,8z)
Shure of results of ussoclutes (z,<<<,86;) (z,-c,z,)
Lepreclutlon of property, plunt und equlpment ,;|6,8<| ,6c, oz,;az 6,8
Lerecognltlon j lmpulrment losses on property, plunt &
equlpment und lnvestments zo,<< cc,- |,o8 6c,z6-
Proflt on sule of property, plunt und equlpment (z<,o<|) (-,,=c) (o) (-,8zc)
Proflt on sule of noncurrent lnvestments (,cz=,,,) (,zc,8c-)
Culn on sule of rlghts ln subsldlurles (a6,<<) (;<o,;<)
Proflt on sule of lnvestments held for sule (,o) (-8,z) (,<o8) (-,,c-,)
Proflt on sule of other lnvestments (o<,66;) (oz,<|6)
Amortlsutlon j depreclutlon of leusehold property und
other noncurrent ussets |a,|o| zz,,6
Amortlsutlon j lmpulrment of lntunglble ussets zz6,8a ,8 <,;
Amortlsutlon of other deferred llubllltles (<z) (z,z=8)
Crutulty provlslon und reluted costs ,6< 6=,,88 ,;a =,,=
(Culn) j loss on forelgn exchunge (net) (a,68) ,=,-8 (z,88<) (,)
Proceeds from lnsurunce clulm on property, plunt und equlpment (|o,ooo) (z,6,6)
vrlte buck of deuler deposlts (8,6,)
Unreullsed proflts (a,8) (6)
Negutlve goodwlll on ucqulsltlons (ao,|) (6,-,,)
|,6a8,<86 -,,8,c a,6|,a8a ,8,,8-
c
C
R
O
U
P
A
t
t
r
i
b
u
t
a
b
l
e
t
o
e
q
u
i
t
y
h
o
l
d
e
r
s
o
f
p
a
r
e
n
t
S
t
a
t
e
d
R
e
v
a
l
u
a
t
i
o
n
L
x
c
h
a
n
g
e
O
t
h
e
r
O
t
h
e
r
A
c
c
u
m
u
l
a
t
e
d
1
o
t
a
l
M
i
n
o
r
i
t
y
1
o
t
a
l
l
n
s
.
'
o
o
o
s
c
a
p
i
t
a
l
r
e
s
e
r
v
e
t
r
a
n
s
l
a
t
i
o
n
c
a
p
i
t
a
l
r
e
v
e
n
u
e
p
r
o
f
i
t
i
n
t
e
r
e
s
t
L
q
u
i
t
y
N
o
t
e
r
e
s
e
r
v
e
r
e
s
e
r
v
e
s
r
e
s
e
r
v
e
s
A
s
a
t
A
p
r
i
l
z
o
o
8
z
z
,
a
6
a
,
z
6
;
a
,
6
z
,
o
8
8
o
8
,
z
8
,
6
a
o
<
,
<
;
,
6
|
,
|
<
,
;
a
|
a
|
,
|
;
,
o
o
o
a
,
;
6
,
;
;
<
a
8
,
6
6
,
;
;
<
R
e
v
e
r
s
u
l
o
f
p
r
l
o
r
p
e
r
l
o
d
u
d
j
u
s
t
m
e
n
t
S
A
C
1
-
(
6
6
,
)
(
6
6
,
(
6
6
,
)
A
s
a
t
A
p
r
i
l
z
o
o
8
(
s
t
a
t
e
J
)
z
z
,
a
6
a
,
z
6
;
a
,
6
z
,
o
8
8
o
8
,
z
8
,
6
a
o
<
,
<
;
,
6
|
,
|
z
,
6
z
a
|
,
|
|
o
,
8
6
a
,
;
6
,
;
;
<
a
8
,
o
o
,
6
a
a
S
h
u
r
e
o
p
t
l
o
n
s
e
x
e
r
c
l
s
e
d
6
c
,
8
6
c
,
8
6
c
,
8
R
e
p
u
r
c
h
u
s
e
o
f
o
r
d
l
n
u
r
y
s
h
u
r
e
s
(
z
,
z
=
,
c
c
c
)
(
z
,
z
=
,
c
c
c
)
(
z
,
z
=
,
c
c
c
)
C
u
r
r
e
n
c
y
t
r
u
n
s
l
u
t
l
o
n
d
l
f
f
e
r
e
n
c
e
s
z
8
=
,
8
c
6
z
8
=
,
8
c
6
z
c
,
6
z
-
c
6
,
z
6
8
N
e
t
g
u
l
n
j
(
l
o
s
s
)
r
e
c
o
g
n
l
s
e
d
d
l
r
e
c
t
l
y
l
n
e
q
u
l
t
y
S
u
r
p
l
u
s
o
n
r
e
v
u
l
u
u
t
l
o
n
c
c
,
6
=
-
c
c
,
6
=
-
(
=
=
,
z
8
-
)
=
,
-
,
c
A
c
q
u
l
s
l
t
l
o
n
s
,
d
l
s
p
o
s
u
l
s
u
n
d
c
h
u
n
g
e
s
l
n
h
o
l
d
l
n
g
(
8
,
6
c
)
,
=
z
c
(
-
,
c
)
z
8
,
-
A
s
s
o
c
l
u
t
e
c
o
m
p
u
n
y
s
h
u
r
e
o
f
n
e
t
u
s
s
e
t
s
8
-
c
,
c
-
8
z
,
,
,
z
=
,
z
,
6
6
=
,
=
=
6
6
=
,
=
=
6
v
r
l
t
e
o
f
f
j
t
r
u
n
s
f
e
r
6
,
=
8
-
)
8
c
,
z
c
z
(
6
,
-
8
)
(
z
,
8
=
)
(
8
,
8
6
6
)
P
r
o
f
l
t
f
o
r
t
h
e
y
e
u
r
(
s
t
a
t
e
J
)
,
,
-
z
,
-
c
,
,
-
z
,
-
c
z
-
z
,
-
,
6
=
c
l
l
n
u
l
d
l
v
l
d
e
n
d
p
u
l
d
z
c
c
,
j
c
8
(
6
-
6
,
c
c
-
)
(
6
-
6
,
c
c
-
)
(
6
-
6
,
c
c
-
)
l
n
t
e
r
l
m
d
l
v
l
d
e
n
d
p
u
l
d
z
c
c
8
j
c
,
z
,
,
)
(
,
z
,
,
,
z
,
,
)
S
u
b
s
l
d
l
u
r
y
d
l
v
l
d
e
n
d
t
o
m
l
n
o
r
l
t
y
s
h
u
r
e
h
o
l
d
e
r
s
c
z
c
(
z
=
z
,
8
,
)
(
z
z
-
,
6
=
,
)
A
s
a
t
|
M
a
r
c
h
z
o
o
s
t
a
t
e
J
)
z
z
,
<
z
<
,
o
8
<
,
<
;
,
;
|
6
,
a
|
,
z
z
z
a
z
<
,
;
6
<
<
,
<
;
,
6
|
o
,
o
z
6
,
6
6
z
a
<
,
<
o
6
,
a
<
6
a
,
6
o
,
|
o
<
o
,
a
6
6
,
;
6
<
S
h
u
r
e
o
p
t
l
o
n
s
e
x
e
r
c
l
s
e
d
,
,
,
z
,
,
z
,
,
z
z
L
l
r
e
c
t
c
o
s
t
o
n
s
h
u
r
e
l
s
s
u
e
(
z
,
,
6
)
(
z
,
,
6
)
(
=
,
,
=
8
)
(
-
-
,
6
,
)
C
u
r
r
e
n
c
y
t
r
u
n
s
l
u
t
l
o
n
d
l
f
f
e
r
e
n
c
e
s
z
,
6
,
z
)
z
,
6
,
z
)
(
,
)
(
,
,
=
8
)
R
e
s
e
r
v
e
d
d
u
r
l
n
g
t
h
e
y
e
u
r
-
c
,
c
c
c
(
-
c
,
c
c
c
)
N
e
t
g
u
l
n
j
(
l
o
s
s
)
r
e
c
o
g
n
l
s
e
d
d
l
r
e
c
t
l
y
l
n
e
q
u
l
t
y
S
u
r
p
l
u
s
o
n
r
e
v
u
l
u
u
t
l
o
n
z
,
6
,
,
z
,
6
,
,
8
-
8
,
8
8
-
=
,
6
6
A
c
q
u
l
s
l
t
l
o
n
s
,
d
l
s
p
o
s
u
l
s
u
n
d
c
h
u
n
g
e
s
l
n
h
o
l
d
l
n
g
)
(
,
-
=
6
,
c
c
,
-
=
=
,
8
A
s
s
o
c
l
u
t
e
c
o
m
p
u
n
y
s
h
u
r
e
o
f
n
e
t
u
s
s
e
t
s
(
-
z
,
6
z
)
z
,
6
c
c
(
,
,
=
c
z
)
(
-
,
,
=
-
(
-
,
,
=
-
)
v
r
l
t
e
o
f
f
j
t
r
u
n
s
f
e
r
(
6
,
,
z
8
)
=
,
=
c
8
(
z
,
6
z
c
)
(
z
,
c
=
-
)
(
z
-
,
6
,
-
)
P
r
o
f
l
t
f
o
r
t
h
e
y
e
u
r
=
,
z
c
=
,
z
c
-
=
c
,
8
z
=
,
=
=
z
,
-
=
l
l
n
u
l
d
l
v
l
d
e
n
d
p
u
l
d
z
c
c
8
j
c
(
6
,
-
=
-
)
(
6
,
-
=
-
)
(
6
,
-
=
-
)
l
n
t
e
r
l
m
d
l
v
l
d
e
n
d
z
c
c
,
z
-
z
,
z
8
)
(
,
z
-
z
,
z
8
,
z
-
z
,
z
8
)
S
u
b
s
l
d
l
u
r
y
d
l
v
l
d
e
n
d
t
o
m
l
n
o
r
l
t
y
s
h
u
r
e
h
o
l
d
e
r
s
z
-
,
,
c
6
z
-
,
,
c
6
(
z
6
-
,
8
c
c
)
(
z
c
,
c
)
A
s
a
t
|
M
a
r
c
h
z
o
o
z
|
,
|
z
z
,
a
o
o
<
,
;
z
;
,
|
z
6
,
a
;
,
a
z
8
,
|
6
<
<
,
<
a
;
,
6
|
|
,
|
8
8
,
z
6
a
,
8
|
z
,
z
;
6
,
a
z
,
<
z
<
6
,
z
6
,
;
8
|
L
e
t
u
l
l
s
o
f
o
t
h
e
r
r
e
v
e
n
u
e
r
e
s
e
r
v
e
s
h
u
v
e
b
e
e
n
d
l
s
c
l
o
s
e
d
l
n
N
o
t
e
l
l
g
u
r
e
s
l
n
b
r
u
c
k
e
t
s
l
n
d
l
c
u
t
e
d
e
d
u
c
t
l
o
n
s
.
1
h
e
u
c
c
o
u
n
t
l
n
g
p
o
l
l
c
l
e
s
u
n
d
n
o
t
e
s
u
s
s
e
t
o
u
t
l
n
p
u
g
e
s
z
t
o
-
z
f
o
r
m
u
n
l
n
t
e
g
r
u
l
p
u
r
t
o
f
t
h
e
s
e
f
l
n
u
n
c
l
u
l
s
t
u
t
e
m
e
n
t
s
.
S1A1LMLN1 OI CBANCLS INLOUI1Y
S1A1LMLN1 OI CBANCLS IN LOUI1Y
C
O
M
P
A
N
Y
S
t
a
t
e
d
C
e
n
e
r
a
l
D
i
v
i
d
e
n
d
I
n
v
e
s
t
m
e
n
t
A
c
c
u
m
u
l
a
t
e
d
1
o
t
a
l
c
a
p
i
t
a
l
r
e
s
e
r
v
e
r
e
s
e
r
v
e
e
q
u
a
l
i
s
a
t
i
o
n
p
r
o
f
i
t
e
q
u
i
t
y
l
n
s
.
'
o
o
o
s
r
e
s
e
r
v
e
A
s
a
t
A
p
r
i
l
z
o
o
8
z
z
,
a
6
a
,
z
6
;
z
,
6
o
o
,
o
o
o
,
<
,
|
z
z
;
<
,
o
o
o
z
,
a
8
,
a
<
z
8
,
8
o
;
,
o
8
a
S
h
u
r
e
o
p
t
l
o
n
s
e
x
e
r
c
l
s
e
d
6
c
,
8
6
c
,
8
R
e
p
u
r
c
h
u
s
e
o
f
o
r
d
l
n
u
r
y
s
h
u
r
e
s
(
z
,
z
=
,
c
c
c
)
(
z
,
z
=
,
c
c
c
)
P
r
o
f
l
t
f
o
r
t
h
e
y
e
u
r
,
-
6
-
,
z
,
z
,
-
6
-
,
z
,
z
l
l
n
u
l
d
l
v
l
d
e
n
d
p
u
l
d
z
c
c
,
j
c
8
(
6
-
6
,
c
c
-
)
(
6
-
6
,
c
c
-
)
l
n
t
e
r
l
m
d
l
v
l
d
e
n
d
p
u
l
d
z
c
c
8
j
c
,
z
,
,
)
(
,
z
,
,
)
A
s
a
t
|
M
a
r
c
h
z
o
o
z
z
,
<
z
<
,
o
8
z
,
6
o
o
,
o
o
o
,
<
,
|
z
z
;
<
,
o
o
o
z
,
|
|
|
,
|
z
<
z
,
o
<
z
,
;
<
<
S
h
u
r
e
o
p
t
l
o
n
s
e
x
e
r
c
l
s
e
d
,
,
,
z
,
,
z
z
P
r
o
f
l
t
f
o
r
t
h
e
y
e
u
r
,
6
6
,
c
=
,
6
6
,
c
=
l
l
n
u
l
d
l
v
l
d
e
n
d
p
u
l
d
z
c
c
8
j
c
(
6
,
-
=
-
)
(
6
,
-
=
-
)
l
n
t
e
r
l
m
d
l
v
l
d
e
n
d
z
c
c
,
z
-
z
,
z
8
)
(
,
z
-
z
,
z
8
)
A
s
a
t
|
M
a
r
c
h
z
o
o
z
|
,
|
z
z
,
a
o
o
z
,
6
o
o
,
o
o
o
,
<
,
|
z
z
;
<
,
o
o
o
<
,
<
o
,
;
a
z
|
z
,
6
6
;
,
a
6
a
l
l
g
u
r
e
s
l
n
b
r
u
c
k
e
t
s
l
n
d
l
c
u
t
e
d
e
d
u
c
t
l
o
n
s
.
1
h
e
u
c
c
o
u
n
t
l
n
g
p
o
l
l
c
l
e
s
u
n
d
n
o
t
e
s
u
s
s
e
t
o
u
t
l
n
p
u
g
e
s
z
t
o
-
z
f
o
r
m
u
n
l
n
t
e
g
r
u
l
p
u
r
t
o
f
t
h
e
s
e
f
l
n
u
n
c
l
u
l
s
t
u
t
e
m
e
n
t
s
.
z
. ACCOUN1INCPOLICILS
'ohn leells Eoldlngs PLC, ls u publlc llmlted llublllty
compuny lncorporuted und domlclled ln Srl Lunku und llsted
on the Colombo Stock Lxchunge. 1he reglstered offlce und
prlnclpul pluce of buslness of the compuny ls locuted ut -c,
Clennle Street, Colombo z.
Crdlnury shures of the compuny ure llsted on the Colombo
Stock Lxchunge. Clobul deposltory recelpts (CLRs) of 'ohn
leells Eoldlngs PLC, ure llsted on the Luxembourg Stock
Lxchunge.
ln the unnuul report of the 8ourd of dlrectors und ln the
flnunclul stutements, the compuny refers to 'ohn leells
Eoldlngs PLC, us the holdlng compuny und the group
refers to the compunles whose uccounts huve been
consollduted thereln. 1he flnunclul stutements for the yeur
ended - Murch zcc were uuthorlsed for lssue by the
dlrectors on z Muy zcc.
'ohn leells Eoldlngs PLC, becume the holdlng compuny of
the group durlng the flnunclul yeur ended - Murch 86.
1he prlnclpul uctlvltles of the group ure stuted ln the unnuul
report of the 8ourd of dlrectors.
1he flnunclul stutements ure presented ln Srl Lunkun
rupees, whlch ls the group's functlonul und presentutlon
currency, except for certuln subsldlurles und ussoclutes
whose functlonul currency ls dlfferent us they operute ln
dlfferent economlc envlronments.
All vulues presented ln the flnunclul stutements ure ln Srl
Lunku rupees thousunds (Rs.'ccc) unless otherwlse
lndlcuted.
1he slgnlflcunt uccountlng pollcles ure belng dlscussed
below.
.. CLNLRAL POLICILS
... Statement of compliance
1he bulunce sheet, stutement of lncome, stutement of
chunges ln equlty und the cushflow stutement, together
wlth the uccountlng pollcles und notes (the flnunclul
stutements) huve been prepured ln compllunce wlth the
Srl Lunku Accountlng Stundurds (SLAS) lssued by the
lnstltute of Churtered Accountunts of Srl Lunku und the
requlrement of the Compunles Act No. , of zcc,.
..z. 8asis of preparation
1he flnunclul stutements, presented ln Srl Lunku rupees,
huve been prepured on un uccruul busls und under the
hlstorlcul cost conventlon unless stuted otherwlse.
..| Significant accounting [udgments, estimates and
assumptions
1he prepurutlon of Croups consollduted und Compuny
flnunclul stutements ln conformlty wlth SLAS, requlres
munugement to muke judgments, estlmutes und
ussumptlons thut uffect the uppllcutlon of uccountlng
pollcles und the reported umounts of ussets, llubllltles,
lncome und expenses und the dlsclosure of contlngent
llubllltles, ut the reportlng dute. Eowever, uncertulnty
ubout these ussumptlons und estlmutes could result ln
outcomes thut requlre muterlul udjustments to the currylng
umounts of the usset or llublllty uffected ln future perlods.
1he judgments, estlmutes und underlylng ussumptlons ure
bused on hlstorlcul experlence und vurlous other fuctors
thut ure belleved to be reusonuble under the clrcumstunces,
the results of whlch form the busls of muklng the
judgments, estlmutes und ussumptlons ubout the currylng
umount of ussets, llubllltles und contlngent llubllltles thut
ure not reudlly uppurent from other sources.
1he judgments, estlmutes und underlylng ussumptlons ure
revlewed on un ongolng busls. Revlslons to uccountlng
estlmutes ure recognlsed ln the perlod ln whlch the
estlmute ls revlsed lf the revlslon uffects only thut perlod, or
ln the perlod of the revlslon und future perlods lf the
revlslon uffects both current und future perlods.
'udgments, estlmutes und ussumptlons mude by
munugement ln the uppllcutlon of SLAS thut could huve u
slgnlflcunt effect on the flnunclul stutements ure mentloned
below.
Policy Note
vuluutlon of property, plunt & equlpment .=. z
vuluutlon of lnvestment property .=.-
vuluutlon of lntunglble ussets .=. =
Leferred tux ..z ,
lmpulrment of ussets .=.6 z,=,6
lnsurunce provlslon llfe .6.- =
lnsurunce provlslon generul .6. =
vuluutlon of employee beneflt llubllltles .6. 8
Provlslons, contlngent ussets und
contlngent llubllltles .6.6 -=
..a. Changes in accounting policies
1he uccountlng pollcles udopted ure conslstent wlth those
of the prevlous flnunclul yeur other thun the uccountlng
pollcy on reseurch und development costs us stuted ln
uccountlng pollcy No. .=..z on softwure, whlch wus
udopted durlng the yeur.
..<. Comparative information
Prevlous yeurs' flgures und phruses huve been reurrunged,
wherever necessury, to conform to the current yeur's
presentutlon.
..6. Lvents after the balance sheet date
All muterlul post bulunce sheet events huve been
consldered und upproprlute udjustments or dlsclosures
huve been mude ln the respectlve notes to the flnunclul
stutements.
.z. CONSOLIDA1IONPOLICY
.z.. 8asis of consolidation
1he consollduted flnunclul stutements lnclude the flnunclul
stutements of the compuny, lts subsldlurles und other
compunles over whlch lt hus control und huve been prepured
ln compllunce wlth the group's uccountlng pollcles.
NO1LS 1O1BL IINANCIAL S1A1LMLN1S
All lntru group bulunces, lncome und expenses und proflts
und losses resultlng from lntru group trunsuctlons thut ure
recognlsed ln ussets, llubllltles, lncome und expenses ure
ellmlnuted ln full.
.z.z. Acquisitions and divestments
Acqulsltlons of subsldlurles ure uccounted for uslng the
purchuse method of uccountlng. 1he results of subsldlurles,
jolnt ventures und ussoclutes ucqulred or lncorporuted
durlng the yeur huve been lncluded from the dute of
ucqulsltlon or lncorporutlon, whlle results of subsldlurles,
jolnt ventures und ussoclutes dlsposed, huve been lncluded
up to the dute of dlsposul.
.z.|. Subsidiaries
Subsldlurles ure those enterprlses controlled by the purent.
Control exlsts when the purent holds more thun =c of the
votlng rlghts or otherwlse hus u controlllng lnterest.
1he followlng compunles, wlth equlty control less thun =c,
huve been consollduted us subsldlurles bused on the power
to govern the flnunclul und operutlng pollcles of those
entltles.
Bolding
LEL leells (Pvt) Llmlted =c.cc
1runswure Loglstlcs (Pvt) Llmlted =c.cc
Muck Alr Servlces Muldlves (Pte) Llmlted .cc
1eu Smullholder luctorles PLC -,.6z
Subsldlurles ure consollduted from the dute the purent
obtulns control untll the dute thut control ceuses.
Subsldlurles consollduted huve been llsted ln the group
dlrectory.
1he followlng subsldlurles huve been lncorporuted outslde
Srl Lunku:
Country of Name
Incorporation
lndlu 'ohn leells Alr Servlces lndlu (Pvt) Ltd
'ohn leells loods lndlu (Pvt) Ltd
'ohn leells Loglstlcs lndlu (Pvt) Ltd
Serene Eollduys (Pvt) Ltd
Muurltlus Auxlcogent Alphu (Pvt) Ltd
Auxlcogent Eoldlngs (Pvt) Ltd
Auxlcogent lnternutlonul (Pvt) Ltd
Auxlcogent lnvestments Muurltlus (Pvt) Ltd
'ohn leells Eotels Muurltlus (Pvt) Ltd
'ohn leells Eoldlngs Muurltlus (Pvt) Ltd
leells lood Products Muurltlus (Pvt) Ltd
Republlc of
Muldlves luntuseu vorld lnvestments (Pte) Ltd
'ohn leells Muldlvlun Resorts (Pte) Ltd
Muck Alr Servlces Muldlves (Pte) Ltd
1runqulllty (Pte) Ltd
1ruvel Club (Pte) Ltd
Slngupore 'ohn leells Slngupore (Pte) Ltd
Unlted llngdom 'ohn leells Computer Servlces (Ul) Ltd
USA Auxlcogent lnternutlonul US lnc
1he totul proflts und losses for the perlod of the compuny
und of lts subsldlurles lncluded ln consolldutlon, und ull
ussets und llubllltles of the compuny und of lts subsldlurles
lncluded ln consolldutlon, ure shown ln the consollduted
lncome stutement und bulunce sheet respectlvely.
Mlnorlty lnterest whlch represents the portlon of proflt or
loss und net ussets not held by the group, ure shown us u
component of proflt for the perlod ln the lncome stutement
und us u component of equlty ln the consollduted bulunce
sheet, sepurutely from purent shureholders' equlty.
1he consollduted cush flow stutement lncludes the cush
flows of the compuny und lts subsldlurles.
.z.a. 1oint venture
A jolnt venture ls u contructuul urrungement, whereby the
group und other purtles undertuke un economlc uctlvlty
thut ls subject to jolnt control. 1he group recognlses lts
lnterest ln the jolnt venture uslng the proportlonute
consolldutlon method. 1he group's shure of euch of the
ussets, llubllltles, lncome und expenses of the jolnt venture
ure comblned wlth slmllur ltems, llne by llne, ln the
consollduted flnunclul stutements.
lnformutlon Systems Assoclutes (u jolnt venture) hus been
lncorporuted ln Unlted Arub Lmlrutes.
.z.<. Associates
Assoclutes ure those lnvestments over whlch the group hus
slgnlflcunt lnfluence und holds zc to =c of the equlty und
whlch ure nelther subsldlurles nor jolnt ventures of the
group.
1he group ceuses to use the equlty method of uccountlng
on the dute fromwhlch lt no longer hus slgnlflcunt lnfluence
ln the ussoclute.
Assoclute compunles of the group whlch huve been
uccounted for under the equlty method of uccountlng ure:
Muersk Lunku (Pvt) Ltd
Nutlons 1rust 8unk PLC
South Aslu Cutewuy 1ermlnuls (Pvt) Ltd
Cuutrro 8uslness Support Servlces (Pvt) Ltd
Cuutrro llnunce & Accountlng Solutlons (Pvt) Ltd
Centrul Eospltul (Prlvute) Ltd, (consollduted us un
ussoclute from 6 Lecember zcc)
All ussoclutes ure lncorporuted ln Srl Lunku, except for
Cuutrro 8uslness Support Servlces (Pvt) Ltd und Cuutrro
llnunce & Accountlng Solutlons (Pvt) Ltd whlch ure
lncorporuted ln lndlu.
1he lnvestments ln ussoclutes ure currled ln the bulunce
sheet ut cost plus post ucqulsltlon chunges ln the group's
shure of net ussets of the ussoclutes. Coodwlll relutlng to
un ussoclute ls lncluded ln the currylng umount of the
lnvestment. After uppllcutlon of the equlty method, the
group determlnes whether lt ls necessury to recognlse uny
uddltlonul lmpulrment loss wlth respect to the group's net
lnvestment ln the ussoclute. 1he lncome stutement reflects
the shure of the results of operutlons of the ussoclute.
vhere there hus been u chunge recognlsed dlrectly ln the
equlty of the ussoclute, the group recognlses lts shure of
uny chunges ln the stutement of chunges ln equlty.
NO1LS 1O 1BL IINANCIAL S1A1LMLN1S
-
vhen the group's shure of losses ln un ussoclute equuls or

exceeds the lnterest ln the undertuklng, the group does not
recognlse further losses unless lt hus lncurred obllgutlons or
mude puyments on behulf of the entlty.
1he uccountlng pollcles of ussoclute compunles conform to
those used for slmllur trunsuctlons of the group. Accountlng
pollcles thut ure speclflc to the buslness of ussoclute
compunles ure dlscussed ln note .8.
.z.6. Coodwill
Coodwlll ucqulred ln u buslness comblnutlon ls lnltlully
meusured ut cost belng the excess of the cost of the
buslness comblnutlon over the group's lnterest ln the net
fulr vulue of the ldentlfluble ussets, llubllltles und contlngent
llubllltles. lollowlng lnltlul recognltlon, goodwlll ls
meusured ut cost less uny uccumuluted lmpulrment losses.
Coodwlll ls revlewed for lmpulrment, unnuully or more
frequently lf events or chunges ln clrcumstunces lndlcute
thut the currylng vulue muy be lmpulred.
lor the purpose of lmpulrment testlng, goodwlll ucqulred ln
u buslness comblnutlon ls, from the ucqulsltlon dute,
ullocuted to groups of cushgenerutlng unlts thut ure
expected to beneflt from the synergles of the comblnutlon.
lmpulrment ls determlned by ussesslng the recoveruble
umount of the cushgenerutlng unlt to whlch the goodwlll
relutes. vhere the recoveruble umount of the cush
generutlng unlt ls less thun the currylng umount, un
lmpulrment loss ls recognlsed. 1he lmpulrment loss ls
ullocuted flrst to reduce the currylng umount of uny
goodwlll ullocuted to the unlt und then to the other ussets
prorutu to the currylng umount of euch usset ln the unlt.
Coodwlll und fulr vulue udjustments urlslng on the
ucqulsltlon of u forelgn operutlon ure treuted us ussets und
llubllltles of the forelgn operutlon und trunsluted ut the
closlng rute.
vhere goodwlll forms purt of u cushgenerutlng unlt und
purt of the operutlon wlthln thut unlt ls dlsposed of, the
goodwlll ussocluted wlth the operutlon dlsposed of ls
lncluded ln the currylng umount of the operutlon when
determlnlng the guln or loss on dlsposul of the operutlon.
.z.;. Iinancial year
As per the group pollcy, results of ull subsldlurles, jolnt
ventures und ussoclutes wlth ulternute yeur ends ure
treuted us follows:
Subsldlurles: z month perlod druwn up to - Murch
'olnt ventures und ussoclutes: z month perlod uslng the
ussoclute's or jolnt venture's yeur end
ln the cuse of jolnt ventures und ussoclutes, where the
reportlng dutes ure dlfferent to group reportlng dutes,
udjustments ure mude for uny slgnlflcunt trunsuctlons or
events upto - Murch.
.|. IORLICNCURRLNCY 1RANSLA1ION
.|.. Ioreign currency transactions
1he consollduted flnunclul stutements ure presented ln
Srl Lunku rupees, whlch ls the compuny's functlonul und
presentutlon currency.
1hefunctlonul currency ls thecurrency of theprlmury economlc
envlronment ln whlch the entltles of the group operute.
All forelgn exchunge trunsuctlons ure converted to Srl
Lunku rupees, ut the rutes of exchunge prevulllng ut the
tlme the trunsuctlons ure effected.
Monetury ussets und llubllltles denomlnuted ln forelgn
currency ure trunsluted to Srl Lunku rupee equlvulents ut
the exchunge rute prevulllng ut the bulunce sheet dute.
Nonmonetury ussets und llubllltles ure trunsluted uslng
exchunge rutes thut exlsted when the vulues were
determlned. 1he resultlng gulns und losses ure uccounted
for ln the lncome stutement.
.|.z. Ioreign operations
1he bulunce sheet und lncome stutement of overseus
subsldlurles und jolnt ventures whlch ure deemed to be
forelgn operutlons ure trunsluted to Srl Lunku rupees ut the
rute of exchunge prevulllng us ut the bulunce sheet dute und
ut the uveruge unnuul rute of exchunge for the perlod
respectlvely.
1he exchunge dlfferences urlslng on the trunslutlon ure
tuken dlrectly to u sepurute component of equlty. Cn
dlsposul of u forelgn entlty, the deferred cumulutlve
umount recognlsed ln equlty relutlng to thut purtlculur
forelgn operutlon ls recognlsed ln the lncome stutement.
1he exchunge rutes uppllcuble durlng the perlod were us
follows:
Income Statement
8alance Sheet Average rate
zoojo zoo8jo zoojo zoo8jo
Rs. Rs. Rs. Rs.
Slngupore dollur 8.|z ,6.c= 8o.6o ,6.-6
Pound sterllng ;.8 6=.= 8|.<6 88.-,
US dollur a.oo =.=- <.oz c.8-
lndlun rupee z.<z z.z, z.a| z.z
UAL dlrhum |.oa -.= |.|z z.c
.a. 1AX
.a.. Current tax
Provlslon for lncome tux ls bused on the elements of
lncome und expendlture us reported ln the flnunclul
stutements und ls computed ln uccordunce wlth the
provlslons of the relevunt tux stututes.
.a.z. Deferred tax
Leferred tuxutlon ls the tux uttrlbutuble to the temporury
dlfferences thut urlse when tuxutlon uuthorltles recognlse
und meusure ussets und llubllltles wlth rules thut dlffer from
those of the consollduted flnunclul stutements.
Leferred tux ls provlded uslng the llublllty method on
temporury dlfferences ut the bulunce sheet dute between
the tux buses of ussets und llubllltles und thelr currylng
umounts for flnunclul reportlng purposes.
Leferred tux llubllltles ure recognlsed for ull tuxuble
temporury dlfferences.
Leferred tux ussets ure recognlsed for ull deductlble
temporury dlfferences, unused tux credlts und tux losses
currled forwurd to the extent thut lt ls probuble thut tuxuble
=
proflt wlll be uvulluble ugulnst whlch the deductlble
temporury dlfferences, the unused tux credlts und tux
losses currled forwurd cun be utlllsed.
1he currylng umount of deferred tux ussets ls revlewed ut
euch bulunce sheet dute und reduced to the extent thut lt ls
no longer probuble thut sufflclent tuxuble proflt wlll be
uvulluble to ullow ull or purt of the deferred tux usset to be
utlllsed. Unrecognlsed deferred tux ussets ure reussessed ut
euch bulunce sheet dute und ure recognlsed to the extent
thut lt hus become probuble thut future tuxuble proflt wlll
ullow the deferred tux usset to be recovered.
Leferred tux ussets und llubllltles ure meusured ut tux rutes
thut ure expected to upply to the yeur when the usset ls
reullsed or llublllty ls settled, bused on the tux rutes und tux
luws thut huve been enucted or substuntlvely enucted us ut
the bulunce sheet dute.
Leferred tux ussets und deferred tux llubllltles ure offset, lf
u legully enforceuble rlght exlsts to set off current tux
ussets ugulnst current tux llubllltles und when the deferred
tuxes relute to the sume tuxuble entlty und the sume
tuxutlon uuthorlty.
Leferred tux relutlng to ltems recognlsed dlrectly ln equlty
ls recognlsed ln equlty.
.<. vALUA1IONOI ASSL1S AND1BLIR 8ASLS OI
MLASURLMLN1
.<.. Property, plant and equipment
Property, plunt und equlpment ls stuted ut cost or fulr vulue
less uccumuluted depreclutlon und uny uccumuluted
lmpulrment ln vulue.
1he currylng vulues of property plunt und equlpment ure
revlewed for lmpulrment when events or chunges ln
clrcumstunces lndlcute thut the currylng vulue muy not be
recoveruble.
All ltems of property, plunt und equlpment ure lnltlully
recorded ut cost. vhere ltems of property, plunt und
equlpment ure subsequently revulued, the entlre cluss of
such ussets ure revulued ut fulr vulue. 1he group hus
udopted u pollcy of revululng ussets every = yeurs, except
for propertles held for rentul und occupled mulnly by group
compunles, whlch ure revulued every - yeurs.
vhen un usset ls revulued, uny lncreuse ln the currylng
umount ls credlted dlrectly to u revuluutlon reserve, except
to the extent thut lt reverses u revuluutlon decreuse of the
sume usset prevlously recognlsed ln the lncome stutement,
ln whlch cuse the lncreuse ls recognlsed ln the lncome
stutement. Any revuluutlon deflclt thut offsets u prevlous
surplus ln the sume usset ls dlrectly offset ugulnst the surplus
ln the revuluutlon reserve und uny excess recognlsed us un
expense. Upon dlsposul, uny revuluutlon reserve relutlng to
the usset sold ls trunsferred to retulned eurnlngs.
ltems of property, plunt und equlpment ure derecognlsed
upon replucement, dlsposul or when no future economlc
beneflts ure expected from lts use. Any guln or loss urlslng
on derecognltlon of the usset ls lncluded ln the lncome
stutement ln the yeur the usset ls derecognlsed.
a) Depreciation
Provlslon for depreclutlon ls culculuted by uslng u strulght
llne method on the cost or vuluutlon of ull property, plunt
und equlpment, other thun freehold lund, ln order to wrlte
off such umounts over the estlmuted useful economlc llfe of
such ussets.
1he estlmuted useful llfe of ussets ure us follows:
Assets Years
8ulldlngs (other thun hotels) =c
Eotel bulldlngs 6c ,=
Plunt und muchlnery c zc
Lqulpment z 8
lurnlture und flttlngs z =
Motor vehlcles c
Luborutory equlpment c
1he useful llfe und reslduul vulue of ussets ure revlewed,
und udjusted lf requlred, ut the end of euch flnunclul yeur.
b) Iinance leases
Property, plunt und equlpment on flnunce leuses, whlch
effectlvely trunsfer to the group substuntlully ull the rlsk
und beneflts lncldentul to ownershlp of the leused
ltems, ure cupltullsed und dlsclosed us flnunce leuses ut
thelr cush prlce und deprecluted over the perlod the
group ls expected to beneflt from the use of the leused
ussets.
1he correspondlng prlnclpul umount puyuble to the
lessor ls shown us u llublllty. Leuse puyments ure
upportloned between the flnunce churges und reductlon
of the leuse llublllty so us to uchleve u constunt rute of
lnterest on the outstundlng bulunce of the llublllty. 1he
lnterest puyuble over the perlod of the leuse ls
trunsferred to un lnterest ln suspense uccount. 1he
lnterest element of the rentul obllgutlons pertulnlng to
euch flnunclul yeur ls churged to the lncome stutement
over the perlod of leuse.
1he cost of lmprovements to bulldlngs on leusehold lund ls
cupltullsed, dlsclosed us leusehold lmprovements, und
deprecluted over the unexplred perlod of the leuse or the
estlmuted useful llfe of the lmprovements, whlchever ls
shorter.
c) Operating leases
Leuses, where the lessor effectlvely retulns substuntlully ull
of the rlsks und beneflts of ownershlp over the term of the
leuse, ure clusslfled us operutlng leuses.
Leuse puyments ure recognlsed us un expense ln the
lncome stutement on u strulghtllne busls over the term of
the leuse.
.<.z. Leasehold property
Prepuld leuse rentuls puld to ucqulre lund use rlghts ure
umortlsed over the leuse term ln uccordunce wlth the
puttern of beneflts provlded. Leusehold property ls tested
for lmpulrment unnuully und ls wrltten down where
uppllcuble. 1he lmpulrment loss lf uny, ls recognlsed ln the
lncome stutement.
6
.<.|. Investment property
Propertles held to eurn rentul lncome, und propertles held
for cupltul uppreclutlon huve been clusslfled us lnvestment
property.
lnvestment propertles ure lnltlully recognlsed ut cost.
Subsequent to lnltlul recognltlon, the lnvestment
propertles ure stuted ut fulr vulues, whlch reflect murket
condltlons ut the bulunce sheet dute.
Culns or losses urlslng from chunges ln fulr vulue ure
lncluded ln the lncome stutement ln the yeur ln whlch they
urlse.
lnvestment propertles ure derecognlsed when dlsposed,
or permunently wlthdruwn from use becuuse no future
economlc beneflts ure expected. Any gulns or losses on
retlrement or dlsposul ure recognlsed ln the lncome
stutement ln the yeur of retlrement or dlsposul.
1runsfers ure mude to lnvestment property, when there ls
u chunge ln use, evldenced by endlng of owner
occuputlon, commencement of un operutlng leuse to
unother purty or endlng of constructlon or development.
1runsfers ure mude from lnvestment property, when there
ls u chunge ln use, evldenced by commencement of
owneroccuputlon or commencement of development
wlth u vlew to sule.
vhere group compunles occupy u slgnlflcunt portlon of
the lnvestment property of u subsldlury, such lnvestment
propertles ure treuted us property, plunt und equlpment ln
the consollduted flnunclul stutements, und uccounted for
us per SLAS 8 (revlsed) Property, Plunt und Lqulpment.
.<.a. Intangible assets
lntunglble ussets ucqulred sepurutely ure meusured on
lnltlul recognltlon ut cost. 1he cost of lntunglble ussets
ucqulred ln u buslness comblnutlon ls the fulr vulue us ut
the dute of ucqulsltlon.
lollowlng lnltlul recognltlon, lntunglble ussets ure currled
ut cost less uny uccumuluted umortlsutlon und uny
uccumuluted lmpulrment losses.
lnternully generuted lntunglble ussets, excludlng
cupltullsed development costs, ure not cupltullsed but
reflected us expendlture ln the lncome stutement ln the
yeur ln whlch the expendlture ls lncurred.
1he useful llves of lntunglble ussets ure ussessed us elther
flnlte or lndeflnlte llves. lntunglble ussets wlth flnlte llves
ure umortlsed over the useful economlc llfe und ussessed
for lmpulrment whenever there ls un lndlcutlon thut the
lntunglble usset muy be lmpulred. 1he umortlsutlon perlod
und the umortlsutlon method for un lntunglble usset wlth
u flnlte useful llfe ls revlewed ut leust ut euch flnunclul
yeurend.
lntunglble ussets wlth lndeflnlte useful llves ure tested for
lmpulrment unnuully elther lndlvlduully or ut the cush
generutlng unlt level.
.<.a. Present value of acquired inforce business
(PvI8)
1he present vulue of future proflts on u portfollo of
long term llfe lnsurunce contructs us ut the
ucqulsltlon dute ls recognlsed us un lntunglble usset
bused on u vuluutlon currled out by un lndependent
uctuury. Subsequent to lnltlul recognltlon, the
lntunglble usset ls currled ut cost less uccumuluted
umortlsutlon und uccumuluted lmpulrment losses.
1he Pvl8 ls umortlsed over the uveruge useful llfe of
the reluted contructs ln the portfollo. 1he
umortlsutlon churge und uny lmpulrment losses
would be recognlsed ln the consollduted lncome
stutement us un expense.
.<.a.z Software
Purchased software
Purchused softwure ls recognlsed us lntunglble
ussets und ls umortlsed on u strulght llne busls over
lts useful llfe.
Software licenses
Softwure llcenses cost ls recognlsed us un lntunglble
usset und umortlsed over the perlod of expected
future usuge of reluted LRP systems.
Research & Development Costs
Reseurch costs ure expensed us lncurred.
Levelopment expendlture on un lndlvlduul project
ls recognlsed us un lntunglble usset when the group
cun demonstrute:
the technlcul feuslblllty of completlng the
lntunglble usset so thut lt wlll be uvulluble for use
or sule,
lts lntentlon to complete und lts ublllty to use or
sell the usset,
how the usset wlll generute future economlc
beneflts,
the uvullublllty of resources to complete the
usset und
the ublllty to meusure rellubly the expendlture
durlng development.
lollowlng lnltlul recognltlon of the development
expendlture us un usset, the cost model ls upplled
requlrlng the usset to be currled ut cost less uny
uccumuluted umortlsutlon und uccumuluted
lmpulrment losses. Amortlsutlon of the usset beglns
when development ls complete und the usset ls
uvulluble for use. lt ls umortlsed over the perlod of
expected future beneflt. Lurlng the perlod of
development, the usset ls tested for lmpulrment
unnuully.
.<.<. Lquity investments
All quoted und unquoted securltles, whlch ure held us non
current lnvestments, ure vulued ut cost. All quoted equltles
,
held us short term lnvestments ure stuted ut murket vulues
wlth the resultunt guln or loss recognlsed ln the lncome
stutement. 1he cost of lnvestment ls the cost of ucqulsltlon
lncluslve of brokeruge und costs of trunsuctlon. 1he
currylng umounts of long term lnvestments ure reduced to
recognlse u decllne whlch ls consldered other thun
temporury ln the vulue of lnvestments, determlned on un
lndlvlduul lnvestment busls.
ln the compuny's flnunclul stutements, lnvestments ln
subsldlurles, jolnt ventures und ussoclute compunles huve
been uccounted for ut cost, net of uny lmpulrment losses
whlch ure churged to the lncome stutement. lncome from
these lnvestments ure recognlsed only to the extent of
dlvldends recelved.
.<.6. Impairment of assets
1he group ussesses ut euch reportlng dute whether there ls
un lndlcutlon thut un usset muy be lmpulred. lf uny such
lndlcutlon exlsts, or when unnuul lmpulrment testlng for un
usset ls requlred, the group mukes un estlmute of the
usset's recoveruble umount. An usset's recoveruble
umount ls the hlgher of un usset's or cush generutlng unlt's
fulr vulue less costs to sell und lts vulue ln use und ls
determlned for un lndlvlduul usset, unless the usset does
not generute cush lnflows thut ure lurgely lndependent of
those from other ussets or groups of ussets. vhere the
currylng umount of un usset exceeds lts recoveruble
umount, the usset ls consldered lmpulred und ls wrltten
down to lts recoveruble umount. ln ussesslng vulue ln use,
the estlmuted future cush flows ure dlscounted to thelr
present vulue uslng u pretux dlscount rute thut reflects
current murket ussessments of the tlme vulue of money
und the rlsks speclflc to the usset.
lmpulrment losses ure recognlsed ln the lncome
stutement, except thut, lmpulrment losses ln respect of
property, plunt und equlpment ure recognlsed ugulnst the
revuluutlon reserve to the extent thut lt reverses u
prevlous revuluutlon surplus.
An ussessment ls mude ut euch reportlng dute us to
whether there ls uny lndlcutlon thut prevlously recognlsed
lmpulrment losses muy no longer exlst or muy huve
decreused. Prevlously recognlsed lmpulrment losses other
thun ln respect of goodwlll, ure reversed only lf there hus
been un lncreuse ln the recoveruble umount of the usset.
Such lncreuse ls recognlsed to the extent of the currylng
umount hud no lmpulrment losses been recognlsed
prevlously.
.<.;. Other noncurrent assets
8ottle depreciation of Ceylon Cold Stores PLC
Returnuble gluss bottles ure reflected under noncurrent
ussets ut cost less depreclutlon. Lepreclutlon ls provlded
over lts useful llfe of = yeurs up to the net reullsuble vulue.
1he net reullsuble vulue of returnuble gluss bottles equuls to
the deposlts recelved by the compuny or cost whlchever ls
lower.
1he wrltten down vulue of bottle breukuges durlng the
flnunclul yeur ls wrltten off to the lncome stutement.
Upon termlnutlon of deulershlp, the welghted uveruge cost
of bottles not returned less the deposlt ls wrltten off to the
lncome stutement.
.<.8. Inventories
lnventorles ure vulued ut the lower of cost und net
reullsuble vulue. Net reullsuble vulue ls the estlmuted selllng
prlce less estlmuted costs of completlon und the estlmuted
costs necessury to muke the sule.
1he costs lncurred ln brlnglng lnventorles to lts present
locutlon und condltlon, ure uccounted for us follows:
Ruw muterluls Cn u welghted uveruge busls
llnlshed goods und At the cost of dlrect muterluls,
vorklnprogress dlrect lubour und un upproprlute
proportlon of flxed productlon
overheuds bused on normul
operutlng cupuclty
Produce lnventorles At slnce reullsed prlce
Cther lnventorles At uctuul cost
.<.. 1rade and other receivables
1rude und other recelvubles ure stuted ut the umounts they
ure estlmuted to reullse, net of provlslons for bud und
doubtful recelvubles.
A provlslon for doubtful debts ls mude when the debt
exceeds 8c duys, und collectlon of the full umount ls no
longer probuble. 8ud debts ure wrltten off when ldentlfled.
.<...
Reinsurance receivable
Relnsurunce ussets lnclude the bulunces due from
both lnsurunce und relnsurunce compunles for puld
und unpuld losses und loss udjustment expenses.
Amounts recoveruble from relnsurers ure estlmuted
ln u munner conslstent wlth the clulm llublllty
ussocluted wlth the relnsured pollcy. Relnsurunce ls
recorded gross ln the consollduted bulunce sheet
unless u rlght to offset exlsts.
lf u relnsurunce usset ls lmpulred, the compuny
reduces the currylng umount uccordlngly und
recognlses u loss ln the stutement of lncome. A
relnsurunce usset ls lmpulred lf there ls objectlve
evldence, us u result of un event thut occurred ufter
the lnltlul recognltlon of the relnsurunce usset, thut
the compuny muy not recelve ull umounts due to lt
under the terms of the contruct, und the event hus u
rellubly meusuruble lmpuct on the umount thut the
compuny wlll recelve from the relnsurer.
.<..z
Premiums receivable
Collectlblllty of premlums und other debts ure
revlewed on un ongolng busls. Lebts thut ure known
to be uncollectlble ure wrltten off. A provlslon for
doubtful debts ls rulsed when some doubt us to
collectlon exlsts.
8
.<.o. Shortterm investments
1reusury bllls und other lnterest beurlng securltles held for
resule ln the neur future to beneflt from shortterm murket
movements ure uccounted for ut cost plus the relevunt
proportlon of the dlscounts or premlums.
.<.. Cash and cash equivalents
Cush und cush equlvulents ln the cush flow stutement comprlse
cushut bunkundlnhundundshort termdeposlts wlthumuturlty
of - months or less, net of outstundlng bunk overdrufts.
.6. LIA8ILI1ILS ANDPROvISIONS
.6.. Defined benefit plan gratuity
1he llublllty recognlsed ln the bulunce sheet ls the present
vulue of the deflned beneflt obllgutlon ut the bulunce sheet
dute uslng the projected unlt credlt method. Any ucturlul
gulns or losses urlslng ure recognlsed lmmedlutely ln the
lncome stutement.
.6.z. Defined contribution plan Lmployees' Provident Iund
and Lmployees' 1rust Iund
Lmployees ure ellglble for Lmployees' Provldent lund
contrlbutlons und Lmployees' 1rust lund contrlbutlons ln
llne wlth respectlve stututes und regulutlons. 1he
compunles contrlbute the deflned percentuges of gross
emoluments of employees to un upproved Lmployees'
Provldent lund und to the Lmployees' 1rust lund
respectlvely, whlch ure externully funded.
.6.|. Insurance provision life
1he Llrectors ugree to the llfe lnsurunce buslness provlslons
on the recommendutlon of the lndependent externul
uctuury followlng hls unnuul lnvestlgutlon of the llfe
lnsurunce buslness.
1he uctuurlul vuluutlon tukes lnto uccount ull llubllltles
lncludlng contlngent llubllltles und ls bused on ussumptlons
recommended by the lndependent externul uctuury.
.6.a. Insurance provision general
Clulms expenses und llubllltles for outstundlng clulms ure
recognlsed ln respect of dlrect und lnwurd relnsurunce
buslness. 1he llublllty covers clulms reported but not yet
puld, lncurred but not reported clulms (l8NR) und the
untlclputed dlrect und lndlrect costs of settllng those clulms.
Clulms outstundlng ure ussessed by revlewlng lndlvlduul
clulm flles und estlmutlng chunges ln the ultlmute cost of
settllng clulms. 1he provlslon ln respect of l8NR ls
uctuurlully vulued to ensure u more reullstlc estlmutlon of
the future llublllty bused on pust experlence und trends.
.6.<. Crants and subsidies
Crunts und subsldles ure recognlsed ut thelr fulr vulue.
vhen the grunt or subsldy relutes to un expense ltem, lt ls
recognlsed us lncome over the perlod necessury to mutch lt
to the costs, whlch lt ls lntended to compensute for, on u
systemutlc busls. Crunts und subsldles reluted to ussets ure
deferred ln the bulunce sheet und credlted to the lncome
stutement over the useful llfe of the usset.
.6.6. Provisions, contingent assets and contingent liabilities
Provlslons ure mude for ull obllgutlons exlstlng us ut the
bulunce sheet dute when lt ls probuble thut such un
obllgutlon wlll result ln un outflowof resources und u relluble
estlmute cun be mude of the quuntum of the outflow.
All contlngent llubllltles ure dlsclosed us u note tothe flnunclul
stutements unless the outflow of resources ls remote.
Contlngent ussets ure dlsclosed, where lnflow of economlc
beneflt ls probuble.
.;. INCOML S1A1LMLN1
.;.. Revenue recognition
Revenue ls recognlsed to the extent thut lt ls probuble thut
the economlc beneflts wlll flow to the group, und the
revenue und ussocluted costs lncurred or to be lncurred cun
be rellubly meusured. Revenue ls meusured ut the fulr vulue
of the conslderutlon recelved or recelvuble, net of trude
dlscounts und vulue udded tuxes, ufter ellmlnutlng sules
wlthln the group.
1he followlng speclflc crlterlu ure used for recognltlon of
revenue:
a) Sale of goods
Revenue from the sule of goods ls recognlsed when the
slgnlflcunt rlsk und rewurds of ownershlp of the goods huve
pussed to the buyer wlth the group retulnlng nelther u
contlnulng munugerlul lnvolvement to the degree usuully
ussocluted wlth ownershlp, nor un effectlve control over
the goods sold.
b) Rendering of services
Revenuefromrenderlngof servlceslsrecognlsedlntheuccountlng
perlodlnwhlchtheservlces urerenderedor performed.
c) Ceneral insurance business Cross written premium
Cross wrltten premlum ls generully recognlsed us wrltten
upon lnceptlon of the pollcy. Upon lnceptlon of the
contruct, premlums ure recorded us wrltten und ure eurned
prlmurlly on u prorutu busls over the term of the reluted
pollcy coveruge. Eowever, for those contructs for whlch
the perlod of rlsk dlffers slgnlflcuntly from the contruct
perlod, premlums ure eurned over the perlod of rlsk ln
proportlon to the umount of lnsurunce protectlon
provlded.
Lurned premlums ure computed on the jzth busls except
for murlne buslness, whlch ls computed on u 6cc busls.
d) Life insurance business Cross written premium
Premlums from trudltlonul llfe lnsurunce contructs,
lncludlng purtlclputlng contructs und non purtlclputlng
contructs, ure recognlsed us revenue when cush ls recelved
from the pollcyholder.
e) 1urnover based taxes
1urnover bused tuxes lnclude vulue udded tux, economlc
servlce churge, turnover tux und tourlsm development levy.
Compunles ln the group puy such tuxes ln uccordunce wlth
the respectlve stututes.
.;.z. Dividend
Llvldend lncome ls recognlsed on u cush busls.
.;.|. Rental income

Rentul lncome ls recognlsed on un uccruul busls over the
term of the leuse.
.;.a. Cains and losses
Net gulns und losses of u revenue nuture urlslng from the
dlsposul of property, plunt und equlpment und other non
current ussets, lncludlng lnvestments, ure uccounted for ln
the lncome stutement, ufter deductlng from the proceeds
on dlsposul, the currylng umount of such ussets und the
reluted selllng expenses.
Culns und losses urlslng from uctlvltles lncldentul to the
muln revenue generutlng uctlvltles und those urlslng from u
group of slmllur trunsuctlons, whlch ure not muterlul ure
uggreguted, reported und presented on u net busls.
Any losses urlslng from guurunteed rentuls ure uccounted
for ln the yeur of lncurrlng the sume. A provlslon ls
recognlsed lf the best estlmute lndlcutes u loss.
.;.<. Other income
Cther lncome ls recognlsed on un uccruul busls.
.;.6. Lxpenditure recognition
Lxpenses ure recognlsed ln the lncome stutement on the
busls of u dlrect ussoclutlon between the cost lncurred und
the eurnlng of speclflc ltems of lncome. All expendlture
lncurred ln the runnlng of the buslness und ln mulntulnlng
the property, plunt und equlpment ln u stute of efflclency
hus been churged to the lncome stutement.
lor the purpose of presentutlon of the lncome stutement,
the functlon of expenses method hus been udopted, on
the busls thut lt presents fulrly the elements of the compuny
und group's performunce.
.;.;. 8orrowing costs
8orrowlng costs ure recognlsed us un expense ln the perlod
ln whlch they ure lncurred, unless they ure lncurred ln
respect of quullfylng ussets ln whlch cuse lt ls cupltullsed.
.8. SICNIIICAN1 ACCOUN1INCPOLICILS 1BA1 ARL SPLCIIIC
1O1BL 8USINLSS OI ASSOCIA1L COMPANILS
.8.. Nations 1rust 8ank PLC.
Revenue recognition
a) Interest income fromcustomer advances
ln terms of the provlslons of the Srl Lunku Accountlng
Stundurd No. z- on Revenue Recognltlon und Llsclosures ln
the flnunclul stutements of bunks und the guldellnes lssued
by the Centrul 8unk of Srl Lunku, lnterest recelvuble ls
recognlsed on un uccruul busls. lnterest ceuses to be tuken
lnto revenue when the recovery of lnterest or prlnclpul ls ln
urreurs for over three (-) months und lnterest uccrued untll
such udvunces belng clusslfled us nonperformlng ure ulso
ellmlnuted from lnterest lncome und trunsferred to lnterest
ln suspense. 1he lnterest lncome on nonperformlng
udvunces ls recognlsed on u cush busls.
b) Income on discounting of bills of exchange
lncome from dlscountlng of bllls of exchunge ls recognlsed
on u cush busls.
c) Income fromgovernment and other discounted securities
Llscounts on treusury bllls, treusury bonds und commerclul
pupers ure recognlsed on u strulghtllne busls over the
perlod to muturlty us lncome. Premlum on treusury bonds
ure uccounted for on u slmllur busls. 1he dlscount und the
premlum ure deult wlthln the lncome stutement.
lncome from ull other lnterestbeurlng lnvestments ls
recognlsed us revenue on un uccruul busls.
d) Iees and commission income
lees und commlsslon lncome comprlse mulnly of fees
recelvuble from customers for guuruntees, fuctorlng, credlt
curds und other servlces provlded by the 8unk together
wlth forelgn und domestlc turlff. Such lncome ls recognlsed
us revenue us the servlces ure provlded.
e) Profit or loss on sale of securities
Proflt or loss urlslng from the sule of murketuble securltles
ls uccounted for on u cush busls und ls cutegorlsed under
other lncome.
f) Lease income
1he bunk follows the flnunce method of uccountlng for
leuse lncome.
.8.z. South Asia Cateway 1erminals (Private) Ltd
Revenue recognition
Stevedorlng revenue ls recognlsed on the berthlng tlme of
the vessel. Storuge revenue ls recognlsed on the lssue of
dellvery udvlce.
.. LMPLOYLL SBARL OP1IONPLAN
Cn z8 'une zcc, shureholders upproved u thlrd plun,
whereby the compuny could lssue unnuully non
trunsferuble cull shure optlons, not exceedlng ln uggregute
z of the totul lssued cupltul of the compuny us ut the dute
of gruntlng every uwurd under thls plun, to u totul of = of
the totul lssued shure cupltul us ut the dute of the lust
uwurd. Approvuls of the CSL und SLC huve been obtulned
for thls plun. As ut - Murch zcc, the totul number of
optlons grunted under thls plun, ufter ullowlng for bonus
lssues und rlghts lssues, wus -c,=,, of whlch c,6-,=6
hud been exerclsed, -,c=c,68 hud lupsed und 6,-=,,,
remuln unexerclsed.
Cn - Lecember zcc,, shureholders upproved u fourth plun,
whereby the compuny could lssue nontrunsferuble cull
shure optlons, not exceedlng ln uggregute c.8= of the
shures ln lssue of the compuny us ut the dute of gruntlng the
uwurd. Approvuls of the CSL und SLC huve been obtulned
for thls plun. As ut - Murch zcc, the totul number of
optlons grunted under thls plun, wus =,c=,= of whlch
z--,-== hud been exerclsed, zz,,c hud lupsed und
,6c,zc remuln unexerclsed.
Cn z Lecember zcc, shureholders upproved u flfth plun,
whereby the compuny could lssue nontrunsferuble cull
shure optlons, not exceedlng ln uggregute of shures ln
lssue of the compuny us ut the dute of gruntlng the uwurd.
Approvuls of the CSL und SLC huve been obtulned for thls
plun. As ut - Murch zcc, the totul number of optlons
grunted under thls plun wus 6,z6,6c of whlch z6,cz= hud
been exerclsed und 6,cc,-= remulns unexerclsed.
cc
As ut - Murch zcc, the totul number of optlons grunted
under the thlrd, fourth und flfth pluns, ufter ullowlng for
bonus lssues und rlghts lssues, wus z,-z,6. Cf thls totul,
c,8,z, optlons hud been exerclsed, -,z6-,68 optlons
hud lupsed und z,,6,=-z remuln unexerclsed.
Cf the z,,6,=-z optlons unexerclsed und outstundlng us
ut - Murch zcc (zcc -c,8z6,c6), ,,,-,== ure
exerclsuble before Aprll zc, ,6,czz ure exerclsuble
before z, Muy zcz, ,6c,zc ure exerclsuble before z
Murch zc- und 6,cc,-= ure exerclsuble before 6
Lecember zc.
.o. LIILC1 OI SRI LANkAACCOUN1INCS1ANDARDS (SLAS)
ISSULD8U1 NO1 YL1 LIILC1IvL
1he followlng stundurds huve been lssued by the lnstltute
of Churtered Accountunts of Srl Lunku und ure effectlve for
flnunclul uccountlng perlods speclfled below.
Sri Lanka Accounting Standard | Share 8ased Payments
(SLAS |)
SLAS - Shure bused puyments, effectlve for perlods
beglnnlng on or ufter 'unuury zc.
SLAS - Shure bused puyments requlre un expense to be
recognlsed when the compuny j group buys goods or
servlces ln exchunge for shures or rlghts over shures
(equltysettled trunsuctlons), or ln exchunge for other
ussets equlvulent ln vulue to u glven number of shures or
rlghts over shures (cushsettled trunsuctlons). lor equlty
settled, shurebused puyment trunsuctlons, the entlty ls
requlred to upply SLAS - to grunts of shures, shure optlons
or other equlty lnstruments thut were grunted ufter
'unuury zc.
As per the trunsltlonul provlslons of thls stundurd, the
employee shure optlons (LSCP) grunted by the compuny
todute (us dlsclosed ln the unnuul report of the 8ourd of
dlrectors) wlll huve no lmpuct or future consequences on
the compunys flnunclul stutements ln the perlod of lnltlul
uppllcutlon.
Sri Lanka Accounting Standard aa Iinancial Instruments,
Presentation (SLAS aa) and Sri Lanka Accounting Standard
a< Iinancial Instruments, Recognition & Measurement
(SLAS a<)
SLAS und = were lssued ln zcc8, und wlll be effectlve for
flnunclul perlods beglnnlng on or ufter 'unuury zc.
Accordlngly, the flnunclul stutements for the yeur endlng -
Murch zcz wlll be requlred to udopt SLAS und =.
1hese two stundurds together provlde comprehenslve
guldunce on ldentlflcutlon, clusslflcutlon, meusurement und
presentutlon of flnunclul lnstruments (lncludlng derlvutlves)
lnto flnunclul ussets, flnunclul llubllltles und equlty
lnstruments. Accordlngly when u flnunclul usset or llublllty ls
recognlsed lnltlully, the group wlll meusure such flnunclul
usset or llublllty ut lts fulr vulue plus, trunsuctlon costs thut
ure dlrectly uttrlbutuble to the ucqulsltlon or lssue of the
flnunclul usset, flnunclul llublllty und subsequently meusured
elther ut fulr vulue or umortlsed cost dependlng on the
cutegorlzutlon of flnunclul ussets und flnunclul llubllltles.
ln order to comply wlth the requlrements of these
stundurds, the compuny j group ls ln the process of settlng
up un lmplementutlon plun und ussesslng the lmpuct of
udoptlon of the uforesuld two stundurds. Lue to the
complex nuture of the effects of these stundurds the
lmpuct of udoptlon ln the perlod of lnltlul uppllcutlon cunnot
be estlmuted us ut the dute of publlcutlon of these flnunclul
stutements.
.. SLCMLN1 INIORMA1ION
... Reporting segments
1he group's lnternul orgunlsutlon und munugement ls
structured bused on lndlvlduul products und servlces whlch
ure slmllur ln nuture und process und where the rlsk und
return ure slmllur. 1he prlmury segments represent thls
buslness structure.
1he secondury segments ure determlned bused on the
group's geogruphlcul spreud of operutlons. 1he
geogruphlcul unulysls of turnover und proflts ure bused on
locutlon of customers und ussets respectlvely.
1he uctlvltles of euch of the reported buslness segments of
the group ure detulled ln the group dlrectory.
..z. Segment information
Segment lnformutlon hus been prepured ln conformlty wlth
the uccountlng pollcles udopted for prepurlng und
presentlng the consollduted flnunclul stutements of the
group.
c
z PROPLR1Y, PLAN1 AND LOUIPMLN1
z. Croup
Land and 8uildings on Plant and Lquipment, Motor Others Capital 1otal 1otal
buildings leasehold machinery furniture vehicles work in zoo zoo
ln s. 'ooos land and fittings progress
Cost or valuation
At the beglnnlng
of the yeur =,=,6- 8,8,=,z ,=-c,= =,,,-,-- 6cz,,=- z,86,- ,c=z |;,6a,o< -,z,,c=
Addltlons z6-,=z --,,66 ,6,8-, -6,,86 c,8== 6-,8c ,86,czc ,;8,<a ,,6c6
Acqulsltlon of subsldlury ,=c,,8c
Llsposuls (6,c) (=,=z) (z,,68) (8,,zz6) (8,6-8) (,z-) (<6|,;86) (=6,,)
Revuluutlons -c,6, |o,6; 6z,-=c
Lerecognltlon j lmpulrment (c,zc) (-,==) (a|,;<z) (z,6z6)
1runsfers (-,8) -,,,=-c 88,66, (=,8) z6,68c 8-,8cz (=-,,) (z,||;) ,6,-,
Lxchunge trunslutlon
dlfference (,-,cz) (6,c,) (8,6=z) (,zz) (-==) (,) (8,|8<) ,,z86
At the end of the yeur =,6c,,z ,,-,= ,,-, =,88,cc =8,8=c z,=-,z ,,8= |8,6,<<z -,,6,c=
Accumulated depreciation
and impairment
At the beglnnlng
of the yeur (,-=) (6-,) (,c=,=cc) (z,=,,,z) (--,,88-) (,6z,=c) (;,6a8,6z) (=,86=,686)
Churge for the yeur (6,6) (-z,=6) (-z,8) (6,6) (6-,,6-) (z,8,z8=) (,;|6,8<|) (,6c,)
Acqulsltlon of subsldlury (=--,cz)
Llsposuls (8) -=,zc =c,-=c 8,,,= 6,8z, aoa,|8 ,,,
Revuluutlons ,, ,; ,,,,
Lerecognltlon j lmpulrment ,, == z,z|a -z,68z
1runsfers ,,zz, (,,zz,) -,8c, (8,c-8) |,;6 (,c,-)
Lxchunge trunslutlon
dlfference ,,==, ,z, = =8 z8 ,6<a (,=z)
At the end of the yeur (zcc,=c) (,cz-,-,8) (z,8,=6-) (-,,z6) (-6c,-z=) (,,=c,686) (8,z;,888) (,,68,6z)
Carrying value
As at | March zoo <,ao6, 8,<o,; z,<6z,a| z,a|6,6a zz,<z< ;|,za| a;,8< z,88,66a
As ut - Murch zcc =,c-,z,, 8,8,=c z,6z=,c z,8=,8, z6,8,c 8-,8cz ,c=z z,6=,zz
z.z Company
Plant and Lquipment, Motor 1otal 1otal
machinery furniture vehicles zoo zoo
ln s. 'ooos and fittings
Cost
At the beglnnlng of the yeur -z,c- 6c,, 66,6-c ;o8,8a| 66c,-c-
Addltlons 6 ,6, 8 <,z6 6z,-,
Llsposuls (-==) (,==c) (,o<) (,-,)
1runsferred to lntunglble Assets (zc,) (zo,aa)
At the end of the yeur -z,= =-,== =,,6 68|,zo ,c8,8-
Accumulated depreciation and impairment
At the beglnnlng of the yeur (z-,z) (,=,) (z,6-) (a8o,66) (-,c,8,-)
Churge for the yeur (,z,) (-,-8) (,,-) (oz,;az) (6,8)
Llsposuls z8 -,-, |,;|< 6,c=
1runsferred to lntunglble Assets 8,-,8 8,|;8
At the end of the yeur (z=,-=) (=z,z8,) (6,=,) (<;,<<) (8c,66)
Carrying value
As at | March zoo ;,aa 6a,z6; ao,zoa ,6<
As ut - Murch zcc 8,c 6=,6cc =,6, zz,,8,,
Croup Company
As at ,st Varcn zoo zoo zoo zoo
ln s'ooos
z.| Land and buildings
At cost z,86z,oza z,66,
At vuluutlon zo,6<,oz zc,=z,,,,
z|,<<;,o|6 z-,zz,,,8
z.a Carrying value
At cost ,o8|,z|8 ,zc,,6 ,6< zz,,8,,
At vuluutlon zo,8o,6| zc,,c,-6,
Cn flnunce leuse (motor vehlcles) a,;8; zc,--
z,88,66a z,6=,zz ,6< zz,,8,,
Letulls of group's lund, bulldlng und other propertles stuted ut vuluutlon ure lndlcuted below:
Property Method of Lffective date Property
valuation of valuation valuer
8ulldlngs on leusehold lund und other propertles of: Lund und bulldlng zc Cctober zcc= R Cvljeslnghe,
Yulu vllluge (Pvt) Ltd. method Consultunt vuluer
und Assessor
8ulldlngs on leusehold lund und other propertles of: Cpen murket vulue c Muy zcc, Euleen Couse,
1runqulllty (Pte) Ltd. method lncorporuted vuluer
Lund und bulldlng of: Cpen murket vulue - Murch zcc8 P 8 lulugulugeduru,
vhlttull 8ousteud Ltd. method Churtered vuluutlon
leells lood Products PLC. Surveyor
Ceylon Cold Stores PLC.
Lund of: Lund und bulldlng - Murch zcc8 R Cvljeslnghe,
Resort Eotels Ltd. method Consultunt vuluer
und Assessor
Lund und bulldlng of: Lund und bulldlng - Murch zcc8 R Cvljeslnghe,
lundy vulk lnn Ltd. method Consultunt vuluer
1runswure Loglstlcs (Pvt) Ltd. und Assessor
8ulldlngs on leusehold lund of: Lund und bulldlng - Murch zcc8 R Cvljeslnghe,
Ceylon Eollduy Resorts Ltd. method Consultunt vuluer
8entotu 8euch Eotel und Assessor
Euburunu Lodge Ltd.
Euburunu vulk lnn Ltd.
Lund und bulldlng of: Lund und bulldlng - Murch zcc8 C' Sumunusenu,
1eu Smullholder luctorles PLC. method lncorporuted vuluer
Plunt und muchlnery of: Contructors test - Murch zcc8
1eu Smullholder luctorles PLC. method
8ulldlngs on leusehold lund of: Lund und bulldlng - Murch zcc8 AY Lunlel &Son,
1runs Aslu Eotels PLC. method lncorporuted vuluer
8ulldlngs on leusehold lund und other propertles of: Lund und bulldlng - Murch zcc8 ER de Sllvu,
Ceylon Eollduy Resorts Ltd. method Churtered vuluutlon
Corul Curdens Eotel Surveyor (Ul)
Lund und bulldlng of: Contructors (cost) - Murch zcc8 AY Lunlel &Son,
Aslun Eotels und Propertles PLC. Summutlon busls lncorporuted vuluer
cz
c-
Property Method of Lffective date Property
valuation of valuation valuer
Lund und bulldlng of: Cpen murket vulue - Murch zcc P 8 lulugulugeduru,
'ohn leells Eoldlngs PLC. method Churtered vuluutlon
'ohn leells PLC. Surveyor
Mucklnnon und leells llnunclul Servlces Ltd.
leells Reultors Ltd.
vhlttull 8ousteud Ltd.
'l Propertles (Pvt) Ltd.
Lund und bulldlng of: Lund und bulldlng - Murch zcc R Cvljeslnghe,
vlruwllu vulk lnn Ltd. method Consultunt vuluer
und Assessor
Lund of: Cpen murket vulue - Lec zcc P 8 lulugulugeduru,
lnternutlonul 1ourlsts & Eotellers Ltd. method Churtered vuluutlon
Surveyor
Lund und bulldlng of: Lund und bulldlng - Lec zcc R Cvljeslnghe,
1rlnco vulk lnn Ltd. method Consultunt vuluer
und Assessor
Lund und bulldlng of: lnvestment - Lec zcc P 8 lulugulugeduru,
Unlon Assurunce PLC. Method Churtered vuluutlon
Surveyor
1he currylng umount of revulued lund und bulldlngs lf they were currled ut cost less depreclutlon, would be us follows:
Croup
As at ,st Varcn zoo zoo
ln s. 'ooos
Cost ,68a,z ,,-z,cc
Accumuluted depreclutlon (,6<8,a) (,88c,6=)
o,oz<,z;8 ,8=,-86
z.< Iinance leases
Property, plunt und equlpment lnclude cupltullsed flnunce leuses. 1he currylng vulue of these ussets ure us follows:
Accumulated Croup
As at ,st Varcn Cost depreciation zoo zoo
ln s. 'ooos
Motor vehlcles -c,8 (6,cz,) a,;8; zc,--
z.6 Croup lund und bulldlngs wlth u currylng vulue of Rs. z,=- mn (zcc Rs. ,= mn) huve been pledged us securlty for term louns
obtulned, detulls of whlch ure dlsclosed ln Note ,.-.
z.; Croup property, plunt und equlpment wlth u cost of Rs. -,=,c mn (zcc Rs. z,-6 mn) huve been fully deprecluted und contlnue
to be ln use by the group. 1he cost of fully deprecluted ussets of the compuny umounts to Rs. -6 mn (zcc Rs. -- mn).
Croup
ln s. 'ooos
| LLASLBOLD PROPLR1Y
Cost a,;;<,;z ,8c-,cc
Accumuluted umortlsutlon (<o,8;6) (zz,zc,)
Lxchunge guln j (loss) (a8,a) zc,=
a,<;6,68; ,,,=,,z
Prepuld leuse rentuls puld to ucqulre lund use rlghts huve been clusslfled us leusehold property und ure umortlsed over the leuse
term ln uccordunce wlth the puttern of beneflts provlded.
|. Details of leasehold Property
Property Land extent Lease period Amount
(in acres) zoo zoo
'ohn leells Muldlvlun Resorts (Pte) Ltd.
Lhonvell 8euch & Spu Resort, 8.6z = yeurs from 6=zcc6 z,a,ozo z,-c-,z
Republlc of Muldlves
'ohn leells vurehouslng (Pvt) Ltd.
Muthurujuwelu 6.cc =c yeurs from zcc a|,a68 ,==8
Rujuwellu Eotels Ltd. c.cc = yeurs und c months from
zzzccc |<,azo -=,8--
1eu Smullholder luctorles PLC.
luruwltu 1eu luctory .8 =c yeurs from =8, ,o ,-8z
1runs Aslu Eotels PLC.
Colombo ,.zc yeurs from ,88 868,z8o 88c,68
1ruvel Club (Pte) Ltd.
Llluldhoo lslund Resort, Republlc of Muldlves -.,= yeurs from 8zcc6 ,|aa,8zo ,,,-z
Yulu vllluge (Pvt) Ltd. c.cc -c yeurs from z,, ;,<88 8z,=8z
a,<;6,68; ,,,=,,z
Croup Company
ln s. 'ooos
a INvLS1MLN1 PROPLR1Y
At the beglnnlng of the yeur z,|z,o< z,z88,z 8,ooo 8-z,=8
Addltlons <,a6o
Chunge ln fulr vulue durlng the yeur c,=,- 66,8z
At the end of the yeur z,||a,a;< z,-z,c= 8,ooo 8,ccc
1he dlrectors vuluutlon of lnvestment property us ut - Murch zcc equuls to Rs. z,-- mn bused on u desktop vuluutlon obtulned
from professlonul vuluers.
a. valuation details of investment property
lnvestment propertles were vulued by quullfled professlonul vuluers us ut -c-zcc, detulls of whlch ure us follows.
Property Method of valuation valuer
Croup
Aslun Eotels und Propertles PLC. lnvestment method P 8 lulugulugederu,
Crescut 8oulevurd, Colombo - Churtered vuluutlon Surveyor
1eu Smullholder luctorles PLC. lnvestment method C ' Sumunusenu, lncorporuted vuluer
Stores Complex, Pellyugodu
1runs Aslu Eotels PLC. Accredlted contructor busls A Y Lunlel & Son, lncorporuted vuluer
Commerclul Centre, Colombo z
Company
'ohn leells Eoldlngs PLC. Cpen murket vulue P 8 lulugulugederu,
Culuhu 8ulldlng, Colombo z Churtered vuluutlon Surveyor
Rentul lncome eurned from lnvestment property by the group und compuny umounts to Rs.z-6 mn (zcc Rs.z- mn) und
Rs. = mn. (zcc Rs.8 mn) respectlvely. Llrect operutlng expenses lncurred by the group und compuny umounted to Rs. 6 mn
(zcc Rs. 6- mn) und Rs. , mn (zcc Rs. 8 mn) respectlvely.
c
c=
< IN1ANCI8LL ASSL1S
Croup Company
As at ,st Varcn zoo zoo zoo
ln s. 'ooos PvI8 Coodwill Software Other Software
Costjcarrying value
At the beglnnlng of the yeur z,z,ccc -,,zc =z,z=, ,=cc z,68,;; z-,,=
Addltlons j trunsfers ,=- 6-,-z 6;,86| 6z,=z6 <,<a;
Acqulsltlon of subsldlury z,z8,=cc
Adjustment due to sule of
noncurrent lnvestments (z,z,z) (z,z;z)
Lxchunge trunslutlon dlfference 6,c 6;o
At the end of the yeur z,z,ccc --c,68, z6,z= ,=cc z,8a<,a|8 z,68,,, <,<a;
Accumulated amortisation
and impairment
At the beglnnlng of the yeur (-c,z86) (|o,z86) (=,6,)
Amortlsutlon j lmpulrment (8,,6) (,cc) (z=,--) (zz6,8a) (,8) (<,;)
1runsfers (-,,6) (|,;6) (8,|;8)
Lxchunge trunslutlon dlfference (-8) (|8)
At the end of the yeur (8,,6) (,cc) (8,,,8,) (z8,z|) (-c,z86) (a,o;)
Carrying value
As at | March zoo z,o6,<8a |6,<; z8,a6a a,<oo z,<<6,a< |;,a<o
As ut - Murch zcc z,z,ccc -,,zc z,, ,=cc z,66,,8
<. Present value of acquired inforce business (PvI8)
As per SLAS z= 8uslness Comblnutlons, lt ls obllgutory of the ucqulrer to fulr vulue the ussets, llubllltles, lntunglble ussets und
contlngent llubllltles of the ucqulree compuny us ut the ucqulsltlon dute. Accordlngly, upon ucqulrlng u controlllng stuke ln Unlon
Assurunce PLC (UA), the group hus recognlsed ln the consollduted flnunclul stutements un lntunglble usset representlng the
present vulue of future proflts on UA's portfollo of long term llfe lnsurunce contructs, known us the Present vulue of ucqulred ln
force buslness (Pvl8) ut the ucqulsltlon dute. lurther, Pvl8 recognlsed ut the ucqulsltlon dute wlll be umortlsed over the llfe of the
buslness ucqulred und revlewed unnuully for uny lmpulrment ln vulue.
<.z Coodwill
Coodwlll ucqulred through buslness comblnutlons huve been ullocuted to slx cush generutlng unlts (CCU's) for lmpulrment testlng
us follows:
Net carrying value of goodwill
Chuuyu Eotels und Resorts -=,6,
llnunclul Servlces ,,c,
Consumer loods und Retull =,,cz=
Clnnumon Eotels und Resorts -=,8,8
Loglstlcs, Ports und Shlpplng ,z6
Alrllnes =,c=
-6,=,
1he recoveruble umount of ull CCUs huve been determlned bused on the fulr vulue less cost to sell or the vulue ln use (vlU)
culculutlon.
key assumptions used in the vIU calculations
Cross margins
1he busls used to determlne the vulue usslgned to the budgeted gross murglns, ls the gross murglns uchleved ln the yeur
preceedlng the budgeted yeur udjusted for projected murket condltlons.
Discount rates
1he dlscount rute used ls the rlsk free rute, udjusted by the uddltlon of un upproprlute rlsk premlum.
Inflation
1he busls used to determlne the vulue usslgned to the budgeted cost lnflutlon ls the lnflutlon rute bused on projected economlc
condltlons.
volume growth
volume growth hus been budgeted on u reusonuble und reullstlc busls by tuklng lnto uccount the growth rutes of one to four yeurs
subsequent to the budgeted yeur bused on lndustry growth rutes. Cush flows beyond the flve yeur perlod ure extrupoluted uslng
c growth rute.
<.| Software
Softwure wlth u flnlte llfe ls umortlsed over the perlod of the expected economlc beneflt, the breuk up of whlch ls us follows:
Net carrying value of software
Croup Company
Leveloped softwure =,,z
Purchused softwure --,,z-
Softwure llcenses -,,=c -,,=c
z8,6 -,,=c
<.a Other intangible assets Union Assurance PLC.
Represents the cost of ucqulsltlon of the buslness from four former brunches, Altken Spence lnsurunce Ltd. Cursons lnsurunce Ltd,
ACv lnsurunce (Pvt) Ltd, und vhlttull 8ousteud Ltd. 1hls bulunce ls not umortlsed but tested for lmpulrment unnuully.
Croup Company
ln s.'ooos estateJ
6 INvLS1MLN1S
6. Carrying value
lnvestments ln subsldlurles
lnvestments consollduted
Cuoted 6.z ;,|;,aa =,-6c,,z
Unquoted 6.- a,|8;,6z6 ,z8,-,8
lnvestments not consollduted
Unquoted 6. <,< =,= <,< =,=
<,< =,= z,;;z,8z ,6,,z-=
lnvestments ln jolnt ventures 6.= 6,8z
lnvestments ln subsldlurles und jolnt ventures <,< =,= z,;;z,8z ,6-,,,
lnvestments ln ussoclutes 6.6 a,|o,86 z,,,6 ,o,8 ,,=,z,
Cther lnvestments
Cther equlty lnvestments
Cuoted 6., |
Unquoted 6.8 o;,6; -,-8, ;,<o; 8z,=z=
o;,8o -,- ;,<o; 8z,=z=
Cther lnvestments 6. 8,|o8,o|6 8,6-8,zz ,-,=8,
8,a<,z6 8,,=,6c- ;,<o; 8,z
lnvestments held for sule 6. ,z -,cc
zz,;z,<; z,,=,c- |o,6z,<o8 z8,,c,,6
Croup Company
At at ,st Varcn Number of zoo zoo Number of zoo zoo
ln s.'ooos shares shares
6.z Croup quoted investments
Aslun Eotels und Propertles PLC. 8=,=-c,6z <,<6a,8o; =,=6,8c, 8=,=-c,6z <,<6a,8o; =,=6,8c,
Ceylon Cold Stores PLC. ,,-8,6 ;88,a;6 ,88,,6 =,c6c,,zz ;;<,aao ,,=,c
Ceylon Cold Stores PLC. Preference shures 8 8
'ohn leells Eotels PLC. ,zc,,c8,,8 ;,|z,;6< =,-8,, ,zc,,c8,,8 ;,|z,;6< =,-8,,
'ohn leells PLC. -,zc8,66 |a,8|o -,8-c -,zc8,66 |a,8|o -,8-c
leells lood Products PLC. ,,8c,c6- za8,a|8 z8,c=8 =,=8,-c, zoz,|; zcz,-,
1eu Smullholder luctorles PLC. =,6-,ccc 6|,a66 6-,66 =,6-,ccc 6|,a66 6-,66
1runs Aslu Eotels PLC. 6,cz6,8z z,z<a,;o z,z=,,c z,-z,c6 ,<a,66< ,=,66=
Unlon Assurunce PLC. -c,z66,c- ,a88,;aa ,8,6- z6,z-,=6= ,a<a,o;o ,-8-,=,
8,||,z|; 6,,=8 ;,|;,aa =,-6c,,z
1he murket vulue of quoted lnvestments umounts to Rs.6,88 mn (zcc Rs.zc,-8 mn) und Rs.6c,-6 mn (zcc ,,,c- mn) for the
group und compuny respectlvely, the detulls of whlch ure us follows:
c6
c,
Croup Company
ln s.'ooos
Market value
Croup quoted investments
Aslun Eotels und Propertles PLC. za,|;,z;< ,=,88- za,|;,z;< ,=,88-
Ceylon Cold Stores PLC. z,8,66a ,zc8,c-- z,<o,a6a ,c6,,z8
'ohn leells Eotels PLC. zz,||,|zz 6,=,,== zz,||,|zz 6,=,,==
'ohn leells PLC. z,<6,o 88,- z,<6,o 88,-
leells lood Products PLC. a<,aza -6z,=- |8<,o z8,8=6
1eu Smullholder luctorles PLC. 8a6,a<o 68,-6 8a6,a<o 68,-6
1runs Aslu Eotels PLC. 8,z,zz; ,c=c,-6c a,z86,<88 z,c,z=
Unlon Assurunce PLC. |,a;,668 z,c=8,= z,;z,|| ,,,=,=,z
6a,88,z zc,-,,88, 6o,|<,6| ,,,c-,6c
Croup Company
Number Number
As at ,st Varcn of shares zoo zoo of shares zoo zoo
ln s.'ooos
6.| Croup unquoted investments
Auxlcogent Alphu (Pvt) Ltd. ,,-=c ;z ,z
Auxlcogent Alphu (Pvt) Ltd. Preference A =,,zcc,ccc 6<,|<8 6=,-=8
Auxlcogent Eoldlngs (Pvt) Ltd. =,ccc,ccc ,<a|,|<| ,=-,-=-
Auxlcogent lnternutlonul (Pvt) Ltd. ,=cc,ccc,ccc ,6<,zoa ,6=,zc
Auxlcogent lnternutlonul Lunku (Pvt) Ltd. -z,z8z,zc= |z|,6;a z8-,6z6
Auxlcogent lnternutlonul US lnc. =,ccc <|8 =-8
Auxlcogent lnvestments Muurltlus (Pvt) Ltd. ,,cc ,<8a ,=8
Auxlcogent lnvestments Muurltlus (Pvt) Ltd.
Preference A =,,zcc,ccc 6<,|<8 6=,-=8
Ceylon Eollduy Resorts Ltd. ,,,-,= <66,<; =66,=,
8eruwulu Eollduy Resorts (Pvt ) Ltd. 6,6cc,ccc 66,ooo
LEL leells (Pvt) Ltd. ,ccc,ccc o,ooo c,ccc ,ccc,ccc o,ooo c,ccc
Llephunt Eouse lurms Ltd. cc,ccc a,ooo ,ccc
lucets (Pvt) Ltd. =,ccc a<o =c =,ccc
luntuseu vorld lnvestments (Pte) Ltd. ,,z, a||,;o8 --,,c8
Euburunu Lodge Ltd. z,8,=8 6<,o8z 6=,c8z
Euburunu vulk lnn Ltd. ,-z,-8 |,8 -,8
lnfoMute (Pvt) Ltd. z,ccc,ccc zo,ooo zc,ccc z,ccc,ccc zo,ooo zc,ccc
lnternutlonul 1ourlsts und Eotellers Ltd. ,,==,=- za;,a< z,,=
' l Puckuglng (Pvt) Ltd. ,=c,ccc ,=c,ccc
' l Propertles (Pvt) Ltd. z,ccc,ccc z,6 z,6 z,ccc,ccc z,6 z,6
'uyluy Murketlng Servlces (Pvt) Ltd. ,8cc,ccc <zz,8z =zz,8z
'ohn leells Alr Servlces lndlu (Pvt) Ltd. 86,zc |,z; -,z, ,z
'ohn leells Alr Servlces lndlu (Pvt) Ltd.
Redeemuble non votlng preference shures 6,=cc,ccc a,8< ,8=
'ohn leells Computer Servlces (Pvt) Ltd. ,6=c,ccc 6,<oo 6,=cc ,6=c,ccc 6,<oo 6,=cc
'ohn leells Computer Servlces (Ul) Ltd. 8 8
'ohn leells loods lndlu (Pvt) Ltd. ,,=cc,ccc 8,ooo 6,,--
'ohn leells Eoldlngs Muurltlus (Pvt) Ltd. ,c,zz= o;,;<6 ==,z ,c,zz= o;,;<6 ==,z8
'ohn leells Eotels Muurltlus (Pvt) Ltd. ,cc 8o 8c
'ohn leells lnternutlonul (Pvt) Ltd. =,=cc,ccc ,<a<,ooo ,==,ccc =,=cc,ccc ,<a<,ooo ,==,ccc
'ohn leells Loglstlcs (Pvt) Ltd. zc,ccc,ccc zoo,ooo zcc,ccc zc,ccc,ccc zoo,ooo zcc,ccc
'ohn leells Loglstlcs lndlu (Pvt) Ltd. ,z-,-, a,<a6 ,=6 6z,,
'ohn leells Loglstlcs lndlu (Pvt) Ltd.
Redeemuble non votlng preference shures =,6cc,ccc |,|< =,-z z,6cc,ccc a,o; ,c,
'ohn leells Loglstlcs Lunku (Pvt) Ltd. 6,=cc,ccc ao,o6 6 6,=cc,ccc ao,o6 6
'ohn leells Muldlvlun Resorts (Pte) Ltd. -,-z,,-8 |,;z,|<o -,,z,-=c
'ohn leells Cfflce Automutlon (Pvt) Ltd. =cc,ccc <,ooo =,ccc =cc,ccc <,ooo =,ccc
'ohn leells Slngupore (Pte) Ltd. 6c,ccc a,zo ,zc 6c,ccc a,zo ,zc
c8
Croup Company
Number Number
ln s.'ooos
6.| Croup unquoted investments (Contd.)
'ohn leells Softwure 1echnologles (Pvt) Ltd. 8cc,ccc 8cc,ccc
'ohn leells Stock 8rokers (Pvt) Ltd. ,=c,ccc <oo =cc 8c,ccc zo zc
'ohn leells 1eus Ltd. z,ccc zo zc z,ccc zo zc
'ohn leells vurehouslng (Pvt) Ltd. z,ccc,ccc zo,ooo zc,ccc
leells Consultunts Ltd. =,,cc ,z ,z =,,cc ,z ,z
leells lood Products Muurltlus (Pvt) Ltd ,8=c z,za ,cz8
leells Eotel Munugement Servlces Ltd. ,ccc,ccc ,o<< ,c== ,ccc,ccc ,o<< ,c==
leells Reultors Ltd. ,,=cc,ccc ;<,ooo ,=,ccc -,ccc,ccc |o,ooo -c,ccc
leells Shlpplng (Pvt) Ltd. =c,ccc <oz =cz =c,ccc <oz =cz
lundy vulk lnn Ltd. 6,6=,8 ao8,8 -6,,-z
Lunku Murlne Servlces (Pvt) Ltd. -,8c=,,c ,|z<,z8 ,-z=,z8 -,8c=,,c ,|z<,z8 ,-z=,z8
Muck Alr Ltd. =cc,ccc ;,<6| 6c =cc,ccc ;,<6| 6c
Muck Alr Servlces Muldlves (Pvt) Ltd. ,cc z,o|< z,c-= ,,cc z,oz z,cz
Mucklnnon & leells llnunclul Servlces Ltd. ,c8c,ccc z,8o6 z,8c6 ,z,ccc ,z ,z
Mucklnnon Muckenzle und Compuny (Shlpplng) Ltd. =cc,ccc a,zoo ,zcc
Mucklnnon Muckenzle und Compuny of Ceylon Ltd. ,ccc 6,6cc
Mucklnnons 1ruvels (Pvt) Ltd. =cc,ccc |,o 6 =cc,ccc |,o 6
Mortluke Ltd. -cc |z;,zao -z,,zc -cc |z;,zao -z,,zc
Nexus Networks (Pvt) Ltd. c,ccc oo cc c,ccc oo cc
Rujuwellu Eotels Compuny Ltd. z,ccc,ccc zo,ooo zc,ccc
Resort Eotels Ltd. ,=,cc, ;<o ,=c
Serene Eollduys (Pvt) Ltd. 8cc,ccc |a,<| -,=-
1runqulllty (Pte) Ltd. 6-,,=cc ,o6,z;o ,c6,z,c
1runswure Loglstlcs (Pvt) Ltd. ,ccc,ccc ,oo ,cc ,ccc,ccc ,oo ,cc
1ruvel Club (Pte) Ltd. z,c= |oz,6ao -cz,6c
1rlnco Eollduy Resorts (Pvt) Ltd. 8,zc,cc= |<;,ooo
1rlnco vulk lnn Ltd. -,ccc,ccc <,ao =,c
vulkers Alr Servlces Ltd. ,=c,ccc ,,=c- ,=c,ccc ,,=c-
vulkers 1ours Ltd. ,z=,=,, z8,ao z8,c ,z=,=,, z8,a z8,
vhlttull 8ousteud (1ruvel) Ltd. ,=c,ccc ao,8a c,8 6,=,ccc ao,|< c,-=
vhlttull 8ousteud Ltd. ,8,88c ||,|8z --,-8z ,,z=8,z6 o6,<o c6,=c
vlruwllu vulk lnn Ltd. ,=cc,ccc z,88< z,88=
Yulu vllluge (Pvt) Ltd. z8,z68,ccc |oo,6;8 zcc,ccc
Yulu vllluge (Pvt) Ltd.
Non votlng preference shures c,ccc,ccc oo,ooo cc,ccc
8,|;6,;a6 ,,88,zz6 a,|8;,6z6 ,z8,-,8
1he dlrectors' vuluutlon of unquoted lnvestments umounts to Rs. 8,-,6 mn (zcc Rs. ,,88 mn) und Rs.,-88 mn (zcc Rs.
,z8 mn) for the group und compuny respectlvely.
Croup Company
Number Number
ln s.'ooos
6.a Investments in subsidiaries not consolidated
leells Systems lntegrutors Ltd. =cc,ccc <,< =,= =cc,ccc <,< =,=
<,< =,= <,< =,=
1he dlrectors vuluutlon of lnvestments ln subsldlurles not consollduted umounts to Rs.= mn (zcc Rs.= mn) for the group und
compuny.
leells Systems lntegrutors Ltd, ls u nonoperutlng subsldlury currently under llquldutlon wlth u net usset vulue thut equuls the book
vulue of the lnvestment.
c
Croup Company
Number Number
ln s.'ooos
6.< Investments in [oint ventures
lnformutlon Systems Assoclutes. ,- a6,a8z 6,8z 6,8z
a6,a8z 6,8z 6,8z
1he dlrectors' vuluutlon of the lnvestments ln jolnt ventures umounts to Rs. 6 mn (zcc Rs. 6 mn) for the group.
1he group hus u lnterest ln lnformutlon Systems Assoclutes (lSA), u jolntly controlled entlty, whlch ls ln the softwure
development servlces buslness ln the Unlted Arub Lmlrutes. 1he summurlsed flnunclul lnformutlon of lSA ls glven ln Note. 6.6.
Croup Company
Number Number
ln s.'ooos estateJ
6.6 Investments in associates
Cuoted
Nutlons 1rust 8unk PLC. 6z,68-,-6c ,|a,6| 6=,86- ,z8,666 86a,|oz 6z,,-c
Unquoted
Centrul Eospltul (Pvt) Ltd. =8,8z-,=z ,ooo,ooo =z,,,6 oo,ooo
Muersk Lunku (Pvt) Ltd. -c,ccc <o =c -c,ccc <o =c
South Aslu Cutewuy 1ermlnuls (Pvt) Ltd. =,8z6,,=c ;,|;<,z6| ,,-,=,z6- =,8z6,,=c ;,|a6,|6; ,,-6,-6,
Cuutrro 8uslness Support Servlces (Pvt) Ltd. ,ccc z,68 z,68
Cuutrro 8uslness Support Servlces (Pvt) Ltd.
Preference A z,=-,=c6 <aa,6zo =,6zc
Cuutrrollnunce&AccountlngSolutlons (Pvt) Ltd. ,,,-z6,c, 6<,|<8 6=,-=8
Proflt uccrulng to the group net of dlvldend z,;<o,; z,6-,=8
Adjustment on uccount of ussoclute compuny
shure of net ussets 668,a|z ,,z,c=
a,|o,86 z,,,6 ,o,8 ,,=,z,
Market value
Investments in associates
Cuoted
Nutlons 1rust 8unk PLC. z,|,8 ,c,8 ,a6;,<o| ,6,6=
z,|,8 ,c,8 ,a6;,<o| ,6,6=
1he dlrectors' vuluutlon of unquoted ussoclute lnvestments umounts to Rs.z,, mn (zcc Rs.,6=6 mn) und Rs.8,z, mn
(zcc Rs.,,-,mn) for the group und compuny respectlvely.
Associates 1oint ventures
ln s.'ooos estateJ
Summarised financial information of associates and [oint ventures
Croup share of,
Revenue o,oo<,88 ,z6,=c6 ;;,zz =6,cz
Cperutlng expenses (;,aoz,8o6) (8,,zc,c==) (;o,o6;) (=c,c)
llnunce expenses (a;,zo8) (86,cz)
Proflt for the yeur z,<<<,86; z,-c,z, ;,o<< =,c=z
c
Associates 1oint ventures
ln s.'ooos estateJ
Croup share of,
1otul ussets |,o8,z< z,8,6z- ;,a8 =8,,
1otul llubllltles (z,z|,o) (z,,=,86) (|;,<o8) (-,6,-)
Net ussets ,8a,z6 8,c6,-, |a,aao z,,8
Coodwlll <,z<,|za ,=,8
Unreullsed proflts (|<a) (=,--=)
a,|o,86 z,,,6 |a,aao z,,8
Contlngent llubllltles <,ao|,6 6,c-,6c8
Cupltul commltments 6,o 86,,c
1he group hus nelther contlngent llubllltles nor cupltul commltments towurds lts ussoclutes und jolnt ventures.
Croup
Number Cost Market value
As at ,st Varcn of shares zoo zoo zoo zoo
ln s.'ooos
6.; Other quoted equity investments
Ceylon Eotels Corporutlon PLC =cc | | 6c
| | 6c
Croup Company
Number Number
ln s.'ooos
6.8 Other unquoted equity investments
ACv lnsurunce Co. Ltd. =c,ccc ,z6 ,z6
Aslu Power (Pvt) Ltd. ,,,,c== ;,<o; ,,=c, ,,,,c== ;,<o; ,,=c,
lltch Rutlng Lunku Llmlted. 6z,=cc 6z< 6z=
Pyrumld Unlt 1rust -c,ccc -,cc
Rulnforest Lcolodge (Pvt) Ltd. z,=cc,ccc z<,ooo z=,ccc
Rujuwellu Eoldlngs Ltd. -,ccc,ccc -,c8 -,ccc,ccc -,c8
SLllA Curgo Servlces Ltd. 6,6z ;< ,6
Srl Lunku Eotel 1ourlsm 1rulnlng lnstltute =,cc <o =c
Srl Lunku Port Munugement &
Consultuncy Servlces Ltd. cc
1he York Compuny Ltd. cc
o;,6; -,-8, ;,<o; 8z,=z=
1he dlrector's vuluutlon of other unquoted equlty lnvestments umounts to Rs. c,mn (zcc Rs.- mn) und Rs.8c mn
(zcc Rs.8- mn) for the group und compuny respectlvely.
Croup Company
Number Number
ln s.'ooos
6. Lquity investments held for sale
l8SL lnformutlon 1echnologles Ltd. -c,ccc ,z -c,ccc -,cc
,z -,cc
Croup Company
ln s.'ooos estateJ
6.o Movement in equity investments
At the beglnnlng of the yeur c,zc,-z
Reversul of prlor perlod udjustment SAC1 - (66,-)
At the beglnnlng of the yeur (estateJ) |,z,8o c,c=,c z;,;|,|8 z-,,68,cc8
Addltlons |;6,oo z,,z8,6c z,|;6,< ,,,c6z
New ucqulsltlons ,ooo,ooo 6=,8- oo,ooo
Llsposuls trunsfers (;,aoo) (,cc,8z6) (<o,|8z) (,,,8)
Net movement ln full ln vulue of lnvestments j lmpulrment (|,o) (z,cc8) (|,o8) (6c,z6-)
Adjustment on uccount of ussoclute compuny shure of net ussets (o|,66|) =,=-c
Shure of results of ussoclutes net of dlvldend <6,;<| =8=,,,z
At the end of the yeur a,az,a8 -,z,8c |o,6z,<o8 z,,,-,-8
1otul vulue of lnvestments lncludlng subsldlurles <o,;;,a6 6,,6,66, |o,6z,<o8 z,,,-,-8
Croup lnvestments consollduted (|6,<<6,a6<) (--,68,866)
1otul vulue of equlty lnvestments a,az,a8 -,z,8c |o,6z,<o8 z,,,-,-8
Croup Company
ln s.'ooos
6. Other investments
Asset bucked securltles -,=cc
8unk deposlts oo,ooo cc,ccc
Lebentures ,|o,ooo ,-=,ccc
Covernment securltles ;,o;8,o|6 6,,,z ,-,=8,
8,|o8,o|6 8,6-8,zz ,-,=8,
Croup
Assets Liabilities
ln s.'ooos
; DLILRRLD 1AX
At the beglnnlng of the yeur a;,8a6 ,c, ;;;,z|6 ,-6,c=
New ucqulsltlons -,c8=
Credlt j churge |a,z8 =z,6zz a,aaz z-,z
1runsfers j exchunge trunslutlon dlfference ; ,=c 6a ,
At the end of the yeur 8z,z<z ,,86 ;8,;az ,,,,z-6
1he closlng deferred tux usset & llublllty bulunces relutes to the followlng:
Revuluutlon of lund und bulldlng to fulr vulue (o,8|) (c,8-) z8,;a| z,--
Revuluutlon of lnvestment property to fulr vulue a|,6; -,6,
Acceleruted depreclutlon for tux purposes (a;,a|) (,,=6=) <;;,66< =8,c-c
Lmployee beneflt llubllltles 6o,6|8 ==,--8 (|;,a|a) (,=6)
Losses uvulluble for offset ugulnst future tuxuble lncome z;,o< zc,,88 (<a,a||) (=z,,=,)
Cthers 8,;|< -,c68 <|,<8a -c,c
8z,z<z ,,86 ;8,;az ,,,,z-6
;. 1he group hus tux losses umountlng to Rs. =,z86 mn (zcc Rs. -,-z mn) thut ure uvulluble lndeflnltely for offset ugulnst future
tuxuble proflts of the respectlve compunles ln whlch the tux losses urose.
;.z Leferred tux ussets umountlng to Rs. ,z mn (zcc z6z mn) for the group und Rs. =, mn (zcc Rs. =,c mn) for the compuny
huve not been recognlsed slnce the compunles do not expect these ussets to reverse ln the foreseeuble future.
z
;.| Deferred tax for tax holiday companies
Srl Lunku Accountlng Stundurd SLAS on lncome 1uxes does not speclfy the recognltlon und meusurement of deferred tux for
compunles whlch enjoy tux hollduys under locul jurlsdlctlons.
Sectlon , of the 8ourd of lnvestment LuwNo of ,8, under whlch 1he 8ourd of lnvestment (8Cl) ln Srl Lunku ls set up, hus glven
the 8Cl the power to grunt exemptlons from the lnlund Revenue Act. 1he 8Cl on enterlng lnto ugreement wlth entltles ln the
group hus stuted thut the provlslons of the lnlund Revenue Act shull not upply to the lmposltlon, puyment und recovery of lncome
tuxes, ln respect of the proflts und lncome of the enterprlse, durlng the perlod of the tux exemptlon. lor certuln compunles the
8Cl hus glven the optlon to puy tux us u percentuge of turnover or ut u concesslonury rute ufter the explrutlon of the tux hollduy
perlod.
1he Urgent lssues 1usk lorce (Ul1l) of the lnstltute of Churtered Accountunts of Srl Lunku ls ut present lnterpretlng the
uppllcublllty of SLAS to compunles under 8Cl tux hollduys und the mutter ls stlll under conslderutlon us ut the bulunce sheet dute.
8used on expert oplnlons recelved, the group ls of the vlew thut no provlslon for deferred tux ls necessury durlng the tux hollduy
perlod.
Croup Company
ln s.'ooos
8 O1BLR NONCURRLN1 ASSL1S
8ottle stocks |o8,6<a -c,,6
Louns to executlves 8. <8<,oa< 6z-,c az,o; 6-,,c
Louns to llfe pollcyholders zz6,86z zc,-6c
Louns to subsldlurles 8,ooo z,ccc
vorklnprogress of upurtments <6,<6 =66,z6c
Cthers 8,ooo 6,=cc
,;za,;; ,,,ccc 6o,o; 8,,c
8. Loans to executives
At the beglnnlng of the yeur ;;<,|z -6,c6 8z,z =8,=c
New ucqulsltlons z-,-z
Louns grunted j trunsfered z6,;|| z8z,68 |,6a =,886
Louns recovered (|oa,68a) (6,6,6) (z6,<o8) (z,=)
At the end of the yeur ;|z,aa ,,=,-z 6o,o8 8z,z
Recelvuble wlthln one yeur a;,|6 =,88 8,o ,,z
Recelvuble between one und flve yeurs <8<,oa< 6z-,c az,o; 6-,,c
;|z,aa ,,=,-z 6o,o8 8z,z
Croup Company
ln s.'ooos
INvLN1ORILS
Ruw muterluls 8|,o|z ,-,8c
vorklnprogress z,8,==
llnlshed goods ,az,|< ,z6,
Produce stocks <|,<8o c,=,6
Cther stocks a66,| zz,,== ;;8 8c
z,z<,o66 z,z=,-c- ;;8 8c
Croup Company
ln s.'ooos
o 1RADL AND O1BLR RLCLIvA8LLS
1rude und other recelvubles 6,ao;,6o =,6-8,8= 86,o6| ,,=-c
Relnsurunce recelvubles c. o,|< -,=z8
Premlum recelvuble c.z 8o,;|a 8-,c-
1ux refunds ,66;,;z ,cc,,- a,a ,
Louns to executlves 8. a;,|6 =,88 8,o ,,z
,||,;;; ,cz,,6=- 8a8,zz| ,,,,8-
-
Croup
ln s.'ooos
o. Reinsurance receivables
Relnsurunce recelvubles on outstundlng clulms 8a,6oa 88,88-
Relnsurunce recelvubles on settled clulms net of dues <|,|8 6,--=
Provlslon for bud debts (,68;) (,6c)
o,|< -,=z8
o.z Premium receivable
Premlum recelvuble 88,;6< c,c,
Less: Provlslon for bud debts (8,o|) (8,c-)
8o,;|a 8-,c-
Croup Company
ln s.'ooos
SBOR1 1LRM INvLS1MLN1S
Asset bucked securltles 6,ooo -c,=cc
Lebentures z6<,ooo -,,6,
8unk deposlts 6,||,|< -,c-,8c8 <,|,8o ,c,,zz
Covernment securltles z,,zo ,8zc,=z a,;;8,;8< -=,,c,
Cuoted equltles ut murket vulue . a6,o =c,=c
,|oo,<6 =,-,,-, o,;;,6< ,-,-6-
Croup
Number Cost Market value
As at ,st Varcn of shares zoo zoo zoo zoo
ln s.'ooos
. Ouoted equities at market value
Altken Spence Eotel Eoldlngs PLC. cc,ccc z,aza ,,- |8,<oo ,,==
Altken Spence PLC. 6,ccc z,8a z6,=c 8;,zo z,z
Centrul llnunce Compuny PLC. =,,zcc a,z<< c,=8 zz,|o8 ,,=c=
Eemus Eoldlngs PLC. 8,=c 6,;o8 6,,c8 ,;|8 ,88
1okyo Cement Compuny (Lunku) PLC. =,,8cc ;,8; ,,8, a,a 6,,z
1okyo Cement Compuny (Lunku) PLC. Non votlng ,cc,ccc ,|8 z,az<
Commerclul 8unk of Ceylon PLC. cc,ccc <,z8o zo,;<
Commerclul 8unk of Ceylon PLC. Non votlng ,,8cc zo,|a z8,8z
Eutton Nutlonul 8unk PLC. Non votlng -8,ccc |a,aa< <|,|ao
Sumputh 8unk PLC. =,zcc z8,6; |<,|az
Llstlllerles Compuny of Srl Lunku PLC. =,ccc ,;< |,<;o
Colombo Lockyurd PLC. =z,ccc |,68 az,8z6
Chevron Lubrlcunts Lunku PLC. -6,ccc o,ooa z|,zo
Royul Cerumlcs Lunku PLC. -=,,6cc z|,aa8 ao,ao
Llulog 1elecom PLC. z,8cc,ccc <,<< 8,oo
z6,|86 =8,6-6 a6,o =c,=c

Number of value of Number of value of
shares shares shares shares
ln 'ooos Rs. Rs.
z S1A1LD CAPI1AL
Iully paid ordinary shares
At the beglnnlng of the yeur 6,|<z zz,<z<,o8 6-=, zz,6,z6,
Shure optlons exerclsed 8,zz ;;,zz 8=8 6c,8
Repurchuse of ordlnury shures (z=,=cc)
At the end of the yeur 6,a;a z|,|zz,aoo 6,-=z zz,=z=,c8
1he composltlon of shures ln lssue ls glven under the shure lnformutlon sectlon of the unnuul report (Puge No. =).
z,,6,=-z shures (zcc -c,8z6,c6) huve been reserved to be lssued under the employee shure optlon plun us ut - Murch zcc.
Croup
As at ,st Varcn Note zoo zoo
ln s.'ooos
| CAPI1AL RLSLRvLS
Revuluutlon reserve -. <,;z;,|z6 =,=,,,-6
Lxchunge trunslutlon reserve -.z ,a;,z ,-,zzz
Cther cupltul reserves -.- az8,|6< z=,,6=
;,<;|,6z ,,-6,,z-
-. Revuluutlon reserve conslsts of the net surplus on the revuluutlon of property, plunt & equlpment und lntunglble ussets.
-.z Lxchunge trunslutlon reserve comprlses the net exchunge movement urlslng on the trunslutlon of net equlty lnvestments of
overseus subsldlurles, jolnt venture und ussoclutes lnto Srl Lunkun rupees.
-.- Cther cupltul reserves comprlses of cupltul redemptlon reserve funds urlslng from the redemptlon of preference shures of
subsldlurles.
Croup Company
ln s.'ooos
a RLvLNUL RLSLRvLS
Cenerul reserves . |,oo,;;< -,8,c,,,= z,6oo,ooo z,6cc,ccc
Llvldend reserve .z ,<;z,88 ,=,z,88 ,<,|zz ,=,-zz
lnvestment equullsutlon reserve .- ;<,ooo ,=,ccc ;<,ooo ,=,ccc
Cther revenue reserves <,<a;,6| =,=,,6- a,a,|zz ,,-zz
Accumuluted proflt |,|88,z6 c,cz6,66z <,<o,;az z,---,-z=
8,|6,z< =,=,6z= ,|a<,o6a 6,=z,,6,
. Cenerul reserve represents umounts set uslde by the dlrectors for future expunslon und to meet uny contlngencles.
.z Llvldend reserve represents dlvldend recelved und uvulluble for dlstrlbutlon.
.- lnvestment equullsutlon reserve comprlses umounts set uslde by the dlrectors for lmpulrment of long term lnvestments of the
compuny.
Croup
As at ,st Varcn Note zoo zoo
ln s. 'ooos
< INSURANCL PROvISIONS
Provlslon llfe =. o,z|6,; 8,=z8,c6=
Provlslon generul =.z z,;o,a< z,,,=
z,a<,<;6 ,cz=,6
=
Croup
ln s. 'ooos
<. Insurance provision life
Provlslon o,o8o,|a 8,-,,68
Unclulmed beneflts <<,;z| =6,-,6
o,z|6,; 8,=z8,c6=
Long durutlon contruct llubllltles lncluded ln the llfe lnsurunce fund result, prlmurlly from trudltlonul purtlclputlng und non
purtlclputlng llfe lnsurunce products. Short durutlon contruct llubllltles ure prlmurlly group term, uccldent und heulth lnsurunce
products. 1he uctuurlul reserves huve been estubllsh bused on the followlng:
lnterest rutes whlch vury by product und us requlred by regulutlons lssued by the lnsurunce 8ourd of Srl Lunku (l8SL)
Mortullty rutes bused on publlshed mortullty tubles udjusted for uctuul experlence us requlred by regulutlons lssued by the l8SL
Surrender rutes bused on the uctuul experlence.
1he umount of pollcyholder dlvldend to be puld ls determlned unnuully by the compuny. 1he dlvldend lncludes llfe pollcyholders
shure of net lncome thut ls requlred to be ullocuted by the lnsurunce contruct or by lnsurunce regulutlons.
1he ucturlul vuluutlon of the llfe lnsurunce buslness wus conducted by M Poopulunuthun of Acturlul & Munugement Consultunts
(Pvt) Ltd, us ut - Lecember zcc.
Croup
ln s. 'ooos
<.z Insurance provision general
Reserved for net uneurned premlums ,||o,za< ,z=-,8
Reserved for net deferred ucqulsltlon cost (z|,<;a) (,z)
Reserved for gross outstundlng clulms ,aoz,;88 ,z=8,8c
z,;o,a< z,,,=
Croup
ln s. 'ooos
6 NONIN1LRLS1 8LARINC 8ORROWINCS
At the beglnnlng of the yeur z,ooo z,ccc
Repuyments (|,ooo)
At the end of the yeur 8,ooo z,ccc
Repuyuble wlthln one yeur
Repuyuble between one und flve yeurs 8,ooo z,ccc
8,ooo z,ccc
Croup Company
ln s. 'ooos
; IN1LRLS1 8LARINC 8ORROWINCS
;. Movement
At the beglnnlng of the yeur 6,<<6,6<z 8,86,zc ,z6o,za| z,8=,-
Addltlons 68a,ooo 8,-8c,=c 8,c,c,=c
Repuyments (z,|68,8o) (,z8,c6) (,;z,ooo) (-cc,ccc)
Lxchunge dlfference (6|,a;) ,-,= (z,;<o) =-,8cc
At the end of the yeur a,;o8,az6 6,==6,6=z ,;<,a| ,z6c,z-
Repuyuble wlthln one yeur a,68,;6 ,8,,= |,|<,a| ,,,,6=c
Repuyuble ufter one yeur
Repuyuble between one und flve yeurs ,|,|o< z,-,z66 <,;oo,ooo 8,,,-
Repuyuble ufter flve yeurs ,ao,a< z,-,8,= ,ao,ooo z,-c,6cc
o,<|,a<o ,,-, 6,8ao,ooo c,8z,=-
a,;o8,az6 6,==6,6=z ,;<,a| ,z6c,z-
Croup lnterest beurlng borrowlngs lnclude flnunce leuse obllgutlons umountlng to Rs.z mn (zcc Rs.z mn), detulls of whlch ure
dlsclosed ln note ,.z
6
Croup
ln s. 'ooos
;.z Iinance leases
At the beglnnlng of the yeur z,<| -,
Repuyments (8,66) (c,8)
At the end of the yeur zo,<|; z,=-
llnunce leuse obllgutlons repuyuble wlthln one yeur
Cross llublllty o,88< ,86
llnunce churges (z,z;o) (-,z8)
Net leuse obllgutlon 8,6< 8,6-
llnunce leuse obllgutlons repuyuble between one und flve yeurs
Cross llublllty |,o8z z,z-
llnunce churges (,6o) (=,c-c)
Net leuse obllgutlon ,zz ,c-
llnunce leuse obllgutlons repuyuble ufter flve yeurs
Cross llublllty ,,
llnunce churges
Net leuse obllgutlon ,,
;.| Security and repayment terms
Lending Nature of Interest rate Repayment zoo zoo
institution facility and security terms
'ohn leells Lebentures llxed, seml flxed 8ullet repuyment ut end ,<,a| ,=,-
Eoldlngs PLC. & floutlng of tenure of yeurs,
8lunnuul repuyments.
LlCC 1erm loun AvPLRc.z= Cuurterly lnstullments 6cc,ccc
revlsed quurterly, over = yeurs wlth u gruce
unsecured perlod of 6 months.
llC 6 months Ll8CRz.,=, 8lunnuul repuyments ;,8o,ooo 8,66,,=c
Shure certlflcutes of Aslun commenclng from
Eotels & Propertles PLC, Lecember zcc
'ohn leells Eotels PLC,
1runs Aslu Eotels PLC und
Unlon Assurunce PLC.
,;<,a| ,z6c,z-
Croup companies
Aslun Eotels und Commerclul 1erm loun AvPLR c.= revlsed - monthly lnstullments za;,886 -c6,=86
Propertles PLC. 8unk monthly, unsecured commenclng Aprll zcc
Clnnumon Crund
EN8 1erm loun AvPLR, unsecured -6 monthly lnstullments |6z,8o -,,8c
commenclng Aprll zcc
Ceylon Cold NL8 L lrlendly loun 6.=, luduwelu lund, 6c monthly lnstullments o,o8| -,=c
Stores PLC. bulldlng und muchlnery commenclng Murch zcc8
of soft drlnk plunt
NL8 Project loun c.=, luduwelu lund, 6c monthly lnstullments oa,<|| ,---
bulldlng und muchlnery commenclng Aug zcc,
of soft drlnk plunt
LlCC Project loun c.=, luduwelu lund, Repuyment over = yeurs 8,<8 6,=8
bulldlng und muchlnery commenclng Nov zcc,
of soft drlnk plunt
LlCC 1erm loun AvLR , luduwelu lund, Repuyment over ;o,ooo cc,ccc
bulldlng und muchlnery jz yeurs commenclng
of soft drlnk plunt 'uly zcc8
,
;.| Security and repayment terms
Lending Nature of Interest rate Repayment zoo zoo
institution facility and security terms
Ceylon Eollduy N18 llnunce leuse z,z;z -,666
Resorts Ltd.
LEL leells SC8 1erm loun SLl8CR .-= z monthly lnstullments z,6|z =-,68
(Pvt) Ltd.
Euburunu N18 llnunce leuse ,ao< z,z
Lodge Ltd.
Euburunu N18 llnunce Leuse ,z| ,8-z
vulk lnn Ltd.
'uykuy Murketlng EN8 1erm loun AvPLR c.=, 8 monthly lnstullments -,zz6
Servlces (Pvt) Ltd. stocks ln trude of
leells Super
'ohn leells N18 llnunce leuse 6,|z ,z=
Loglstlcs (Pvt) Ltd.
SC8 1erm Loun month SLl8CR z equul quurterly oo,ooo cc,ccc
Letter of comfort from lnstullments commenclng
'ohn leells Eoldlngs PLC. November zcc.
'ohn leells Sumputh 1erm loun - months Ll8CR .- -c quurterly lnstullments ,oo|,zoo ,zc,=z
Muldlvlun 8unk for flrst two yeurs und
Resorts (Pte) Ltd. Ll8CR .= thereufter,
revlsed quurterly, sub
leuse rlghts
People's 1erm loun - months Ll8CR .z=, -6 monthly lnstullments <<o,;|a
8unk Corporute guuruntee of commenclng
'ohn leells Eotels PLC. September zcc
'ohn leells Leutsche Asset bucked z.8, corporute Repuyment over c yeurs <<,o8| 66,-8
vurehouslng 8unk notes guuruntee of commenclng Muy zcc-
(Pvt) Ltd. 'ohn leells PLC.
lundy vulk lnn Ltd. N18 llnunce leuse ,z| ,8-z
1eu Smullholder People's 1erm loun per unnum,mortguge 8- monthly lnstullments o,a z,68z
luctorles PLC. bunk of Pellyugodu wurehouse
und leuse rlghts of lund
1runs Aslu Sumputh 1erm loun AvPLR, unsecured ==,c6
Eotels PLC. 8unk
ULA llnunce leuse ;,6o 8,=8
1rlnco vulk lnn Ltd. N18 llnunce leuse ,z| ,8-z
1ruvel Club 8CC 1erm loun Ll8CR z, sub leuse z8 quurterly |a,|| 8z,cc=
(Pte) Ltd. Muldlves rlghts und corporute lnstullments
guuruntee of
'ohn leells Eotels PLC.
1runqulllty 8CC 1erm loun Ll8CR .=, leuse Repuyment over ,|o,|6o ,6z,-c
(Pte) Ltd. Muldlves rlghts = yeurs commenclng
Lecember zcc,
vhlttul 8ousteud Ltd. Lebenture ,.=, unsecured a< =
Less: 'lE debenture held by Unlon Assurunce PLC. (<o,ooo) (=c,ccc)
a,;o8,az6 6,==6,6=z
8
Croup Company
ln s.'ooos
8 LMPLOYLL 8LNLII1 LIA8ILI1ILS
At the beglnnlng of the yeur <6,; ,8,6cc z,|<8 8c,--c
Churge o6,a<o c,c,z ;,oa ,,,8
New ucqulsltlons 8,,-6
1runsfers (z,o8;) --
lnterest cost <,6z ,,86c ,z|6 8,c--
Puyments (o;,oa) (z,6c) (;,|<<) (-,z8c)
(Culn) j Loss urlslng from chunges ln ussumptlons or
due to (over) j under provlslon ln the prevlous yeur (o,aa;) (=,) |,az (8-6)
Lxchunge trunslutlon dlfference 68; ,=-
At the end of the yeur ,oa,|< =6,, z,6|o z,-=8
1he expenses ure recognlsed ln the lncome stutement
ln the followlng llne ltems.
Cost of sules 8;,86 8,,6-6 a,zaa 8,c8
Llstrlbutlon expenses 8,6 6-,,8=
Admlnlstrutlve expenses a,;8 ,-6, <,a;o ,,c
,6< 6=,,88 ,;a =,,=
1he employee beneflt llublllty of llsted compunles wlth more thun cc employees und 'uyluy Murketlng Servlces (Pvt) Ltd. ls bused
on the uctuurlul vuluutlon currled out by Messrs. Actuurlul & Munugement Consultunts (Pvt) Ltd., uctuurles. 1he employee beneflt
llublllty of ull other compunles ln the group ure bused on the grutulty formulu ln Appendlx L of SLAS 6 Lmployee 8eneflts.
1he prlnclpul ussumptlons used ln determlnlng the cost of employee beneflts were:
Llscount rute c
luture sulury lncreuses c
Croup
ln s.'ooos
O1BLR DLILRRLD LIA8ILI1ILS
At the beglnnlng of the yeur <,6; ,,c
Crunts recelved -=
Amortlsutlon (<z) (z,z=8)
At the end of the yeur a,6<< =,6,
Amounts expected to be umortlsed wlthln one yeur <z =z
Amounts expected to be umortlsed ufter one yeur a,a| ,6==
a,6<< =,6,
8asis of amortisation
1ea Smallholder Iactories PLC.
Srl Lunku 1eu 8ourd subsldy c p.u. z,o8z z,z6
Yala village (Pvt) Ltd.
Ceylon Chumber of Commerce grunt c p.u. z,<;| z,88
a,6<< =,6,
Croup Company
ln s.'ooos
zo 1RADL AND O1BLR PAYA8LLS
1rude puyubles z,86,z; ,8z,-8=
Relnsurunce puyubles |,zo z6,==
Cbllgutlon to repurchuse securltles <|a,za|
Advunces und deposlts ,66,|;o c,-c
Sundry credltors lncludlng uccrued expenses z,8;;,6|8 z,c6, |a|,az6 --,-
Cther puyubles a6,ao 8,z6-
8,86;,o;8 6,=c=,,, |a|,az6 --,-
Croup Company
ln s.'ooos
z INCOML 1AX LIA8ILI1ILS
At the beglnnlng of the yeur <a,|6z -z8,c
Provlslon -c. ;o6,|; ,z,,,66 6,6o8 =,,c--
New ucqulsltlons zc,c,
Puyments und set off ugulnst refunds (;66,ao) (6z,=) (6,6o8) (=,,c--)
Lxchunge trunslutlon dlfference z|
At the end of the yeur a<a,zz =,-6z
Croup
ln s.'ooos
zz SBOR1 1LRM 8ORROWINCS
Louns <o,ooo c,ccc
<o,ooo c,ccc
Croup Company
ln s.'ooos
z| RLvLNUL
z|. Revenue
Cross revenue a8,|o,z; ,-8,-c6 <aa,| =8,,-z
1urnover tux (ao,z|) (-=8,,86)
Net revenue a;,8o,ooa ,czz,=zc <aa,| =8,,-z
|or tne year enJeJ ,st Varcn zoo zoo
Sale of Rendering of 1otal Sale of Rendering of 1otal
goods services revenue goods services revenue
ln s.'ooos
z|.z 8usiness segment analysis
1runsportutlon ;,8o,6a ,68a,oo| ,aa,6<z ,,,,6c- ,6=,z ,z,8
Lelsure ,a,;|z ,a,;|z ,66z,-8 ,66z,-8
Property ,6zo,o|o ,6zo,o|o ,=,8,-z ,=,8,-z
Consumer loods & Retull 6,;a|,6a ,o,8;| <,8a|,a8; 6,c,,,= ,,,zz,= ,-c,zc
llnunclul Servlces <,z6z,z< <,z6z,z< ,-, ,-,
lnformutlon 1echnology z|,z<a <<,;;; ,a|,o| ,- 686,c ,6c=,=-=
Cthers z,8zo,8z z,8zo,8z z,c-,,- z,c-,,-
Croup revenue <,a;;,<; |z,<oz,a8; a;,8o,ooa ,,c,,,8z z-,,,,-8 ,czz,=zc
Croup
ln s.'ooos
z|.| Ceographical segment analysis (by location of customers)
Srl Lunku ao,za,aaa -,=z-,z8
Aslu (excludlng Srl Lunku) <,<6o,aa; ,,6-,686
Lurope ,z,|a ,6z-,-=8
Cthers z<;,;6a z,zz8
1otul group externul revenue a;,8o,ooa ,czz,=zc
zc
Croup Company
ln s.'ooos
za DIvIDLND INCOML
lncome from lnvestments ln reluted purtles |,<||,a z,z,,88
lncome from other lnvestments a|,< =-,,6= |,6|< =z,8,
a|,< =-,,6= |,<;|,<;6 z,8z,68=
Croup Company
ln s.'ooos
z< O1BLR OPLRA1INC INCOML
lnterest lncome z,a6,|| z,z6=,66- ,zo6,a8a ,8z,,-
Negutlve goodwlll on ucqulsltlons ao,| 6,-,,
Culn on dlsposul of rlghts ln subsldlurles a6,<< ;<o,;<
Lxchunge guln z,<z z8z,c= ,ao =,z=8
lnsurunce clulms 8,|; 6,8=
Culn on sule of property, plunt & equlpment z<,o<| -,,=c o -,8zc
Proflt on sule of lnvestments a,;;6 -8,z zz,oaa -,,c-,
Sundry lncome 6|;,z8 c=,-6 a,o;6 ,,6-
<,ozo,;a< -,,-=,cz z,zo<,o8 ,c,6,
z6 O1BLR OPLRA1INC LXPLNSLS
Cther operutlng expenses conslsts mulnly of power und energy costs, repulrs und mulntenunce expendlture of the group.
Croup Company
ln s.'ooos
z; IINANCL LXPLNSLS
lnterest expense on borrowlngs
Long term ,6z< ,z-,8-, 6;6,z8 886,c
Short term |;8,<| 8,-cz ao,|ao z6,=
,|;o,<6 ,6=,- ;6,6z -,cc
Croup Company
ln s.'ooos
z8 PROII1 ON SALL OI NONCURRLN1 INvLS1MLN1S
Assocluted Motorwuys PLC. ,cz=,,, ,zc,8c-
,cz=,,, ,zc,8c-
Croup Company
ln s.'ooos
z PROII1 8LIORL 1AX
Proflt before tux ls stuted ufter churglng ull expenses lncludlng the followlng:
Remunerutlon to executlve dlrectors a;,zo z=,8 6,<o z,6zc
Remunerutlon to nonexecutlve dlrectors za,z< z,=z ,zo ,c,-
Audltors remunerutlon
Audlt z,6| z-,, a,6zz -,=,z
Nonuudlt 6,||a 6,6, zaa z6z
Costs of deflned employee beneflts
Leflned beneflt plun cost ,6< 6=,,88 ,;a =,,=
Leflned contrlbutlon plun cost LPl und L1l a|<,;z -8=,8=z ao,6;| -,=z=
Stuff expenses <,|a,|<< ,8cz,,== za,8<z z,=
Lepreclutlon of property, plunt & equlpment ,;|6,8<| ,6c, oz,;az 6,8
Amortlsutlon of lntunglble ussets zz6,8a ,8 <,;
Lerecognltlon j lmpulrment losses on property, plunt &
equlpment und lnvestment zo,<< cc,- |,o8 6c,z6-
Cperutlng leuse puyments ,|6,8|; ,z-
Lonutlons ,68 -,== o,a8
z
Croup Company
ln s.'ooos
|o 1AX LXPLNSL
Current income tax
Current tux churge ,6o ,,,z,6 ==,68z
(Cver)junder provlslon of current
tux of prevlous yeurs z,;a =zc,zz 6,6o8 ,-=
Lconomlc servlce churge -c.z 8,;6| (8,-8)
c vlthholdlng tux on lnter compuny dlvldends |,z|a cz,z8,
Deferred income tax
Relutlng to orlglnutlon und reversul of
temporury dlfferences -c.- (|;,8) (8,,=)
8<,zao ,-z6,=c 6,6o8 =,,c--
Croup Company
ln s.'ooos estateJ
|o. Reconciliation between tax expense and the product of accounting profit
Proflt before tux 6,<|;,<<< 6,z,zc a,6;;,66; ,zc,-c=
Llvldend lncome from group compunles |,86,66< z,6z,6z
Shure of results of ussoclutes (z,<<<,86;) (z,-c,z,)
Cther consolldutlon udjustments (za;,66o) (-=,-c,)
;,6o|,6| 6,-z8,8 a,6;;,66; ,zc,-c=
Lxempt proflts (,|<<,;6<) (,zc8,6) (a6;,oaa) (,6)
Proflts not churged to lncome tux (,88,8) (,-6,68) (;;o,a8|) (,z6,8-)
Resldent dlvldend (|,;z<,;<) (z,6-=,8-z) (|,<;|,<;6) (z,8z,68=)
Accountlng proflt j (loss) churguble to lncome tuxes ,|||,z< ,z,686 (||,a|6) 6,-,
1ux effect on churgeuble proflts az8,z; -,88= (a6,;o|) 68,,c
1ux effect on non deductlble expenses ;,66a ,,8c 66,68; 88,
1ux effect on deductlons clulmed (;o,z<) (z,c=) (<<,8|) (=,8)
Net tux effect of unrecognlsed deferred tux ussets for the yeur ;,|8 6,z-
Net tux effect of unrecognlsed deferred tux ussets for prlor yeurs (6,zo) (6,c,) |<, (=c,)
1ux effect on rute dlfferentluls (;,|68) (8,z8z)
Consolldutlon udjustments
(Cver)junder provlslon for prevlous yeurs z,;a =zc,zz 6,6o8 ,-=z
Cther lncome bused tuxes
Lconomlc servlce churge 8,;6| (zc-)
Soclul responslblllty levy ,|| c,- 8z-
lrlnge beneflt tux (lndlun compunles) zo z,z,
c vE1 on lnter compuny dlvldends |,z|a cz,z8,
Current und deferred tux shure of ussoclutes ,;o c,,
8<,zao ,-z6,=c 6,6o8 =,,c--
lncome tux churged ut
Stundurd rute -= 6az, =6,,, =,8=8
Concesslonury Rute of = ao,|| 6,c6
CffShore dlvldend c ,8o<
CffShore proflts ut vurylng rutes ,,
(Cver)junder provlslon for prevlous yeurs z,;a =zc,zz 6,6o8 ,-=z
;o6,|; ,--,6 6,6o8 =6,zc
Leferred tux churge j (reversul) (|a,;) (z,z)
Cther lncome bused tuxes
Lconomlc servlce churge 8,;6| (zc-)
Soclul responslblllty levy ,|| c,- 8z-
lrlnge beneflt tux (lndlun compunles) zo z,z,
c vE1 on lnter compuny dlvldends |,z|a cz,z8,
Current und deferred tux shure of ussoclutes ,;o c,,
1otul lncome tux expense 8<,zao ,-z6,=c 6,6o8 =,,c--
Croup tux expense ls bused on the tuxuble proflt of lndlvlduul compunles wlthln the group. At present the tux luws of Srl Lunku do
not provlde for group tuxutlon.
zz
Croup
ln s.'ooos
|o.z Lconomic service charge (LSC)
LSC wrlttenoffj(wrltten buck) 8,;6| (zc-)
Shure of ussoclute compuny LSC (8,z-=)
8,;6| (8,-8)
Croup
ln s.'ooos
|o.| Deferred tax expense
Income statement
Leferred tux expense urlslng from
Acceleruted depreclutlon for tux purposes z6,a8| (-c,,=)
Revuluutlon of lnvestment property to fulr vulue ,,c
Lmployee beneflt llubllltles (z|,z;8) (z,8,)
8eneflt urlslng from tux losses (6a,6|) (,6,-z,)
Cthers z;,<6 ,6-=
(|a,;) (z,z)
Shure of ussoclute compuny deferred tux (o|,6a) z,,=-=
Deferred tax charge j (credit) (|;,8) (8,,=)
Statement of changes in equity
Leferred tux expense urlslng from revuluutlon of lund und bulldlng to fulr vulue a,|<o 8-,=8
1otal deferred tax charge j (credit) (||,<a) (,,=)
Leferred tux hus been computed ut -= for ull stundurd rute compunles (lncludlng llsted compunles) und ut rutes us dlsclosed ln
note -c.6 und -c.,.
1emporury dlfferences ussocluted wlth lnvestments ln subsldlurles, ussoclutes und jolnt ventures, for whlch u deferred tux llublllty
hus not been recognlsed, umounts to Rs. ,c mn (zcc Rs. ,66- mn). 1he deferred tux effect on undlstrlbuted reserves of
subsldlurles hus not been recognlsed slnce the purent cun control the tlmlng of the reversul of these temporury dlfferences. 1he
deferred tux llublllty on temporury dlfferences relutlng to undlstrlbuted proflts of ussoclutes hus not been recognlsed us there ls
no current lntentlon of dlstrlbutlng retulned eurnlngs to the holdlng compuny.
Eowever, the group hus recognlsed the deferred tux lmpuct pertulnlng to the current yeur on declured dlvldends of subsldlurles
und ussocluted umountlng to Rs. ,c mllllon.
Croup Company
ln s.'ooos
|o.a 1ax losses carried forward
1ux losses brought forwurd |,|z8,;|a z,68,cz ,za,66z ,zc,=8
Adjustments on flnullsutlon of llublllty a<,<| (,,) |,z8a (c,c,8)
1ux losses urlslng durlng the yeur ;;8,oz 8c6,,,,
Utlllsutlon of tux losses (z|<,6o) (z=,=z) (c=,8c8)
Adjustments due to ucqulsltlons j dlsposuls j mergers ,|68,<<| c,-8z
<,z86,oz -,-z8,,- ,<<,a6 ,z,66z
Year of Cost of Relief Liability to
investment approved claimed additional
investment investments tax on
disposal of
Investment
|o.< Details of investment relief
Compuny jzccc =,,c-6 z8,z,c
1he compuny ls ellglble for quullflng puyment rellef grunted under Sectlon -(z)(s) of the lnlund Revenue Act No z8 of , und the
trunsltlonul povlslons ut Sectlon z8 of the lnlund Revenue Act No c of zcc6. 1he compuny hus currled forwurd the unclulmed
lnvestment rellef for set off ln future yeurs.
z-
|o.6 Applicable rates of income tax
1he tux llublllty of resldent compunles ure computed ut the stundurd rute of -= except for the followlng compunles whlch enjoy full or
purtlul exemptlons und concesslons.
Company j Sector 8asis Lxemptions j Period
concessions
Lxemptions j concessions granted under the Inland Revenue Act
Ceylon Cold Stores PLC. CffShore uctlvltles for puyment Lxempt Cpenended
ln forelgn currency
'ohn leells Computer Servlces (Pvt) Ltd. do do do
'ohn leels Cfflce Automutlon (Pvt) Ltd. do do do
leells Eotel Munugement Servlces Ltd. do do do
leells Shlpplng (Pvt) Ltd. do do do
vulkers 1ours Ltd. do do do
'ohn leells Computer Servlces (Pvt) Ltd. Cnshore uctlvltles for puyment Lxempt Cpenended
ln forelgn currency
Ceylon Cold Stores PLC. Munufucture of dulry produce Lxempt Upto - Murch zc
Lunku Murlne Servlces (Pvt) Ltd. Lxport conslgnment sules of
Petroleum Products c Cpenended
Lelsure Sector Promotlon of tourlsm = Cpenended
Mucklnnons 1ruvels (Pvt) Ltd. do do do
Consumer loods und Retull sector Cuullfled export proflts = Upto - Murch zc
Lxemptions j concessions granted under the 8oard of Investment Law
Aslun Eotels und Propertles PLC. Constructlon und operutlon of Lxempt = yeurs from Aprll 6 wlth u
offlce und upurtment complex - yeur extenslon on merger
Auxlcogent lnternutlonul Lunku (Pvt) Ltd. 8uslness j knowledge process Lxempt 8 yeurs from st yeur of proflt
outsourclng centre or z yeurs from operutlons
lnfoMute (Pvt) Ltd. Provlslon of l1 enubled servlces Lxempt - yeurs from Aprll zcc,
'ohn leells Loglstlcs (Pvt) Ltd. lntegruted supply chuln Lxempt = yeurs from Aprll zcc
munugement
1rlnco Eollduy Resorts (Pvt) Ltd. lor upgrudlng und refurblshment Lxempt c yeurs from st yeur of proflt
of u hotel ln the Lustern Provlnce or z yeurs from operutlons
South Aslu Cutewuy 1ermlnuls (Pvt) Ltd. "Port Servlces" ut Lxempt zc yeurs from September
Cueen Lllzubeth Cuuy
'ohn leells lnternutlonul (Pvt) Ltd. Reglonul operutlng heudquurters c z yeurs upto Murch zc
'ohn leells vurehouslng (Pvt) Ltd. Constructlon und operutlon = , yeurs from Aprll zcc-
of wurehouse complex
Yulu vllluge (Pvt) Ltd. Constructlon und operutlon of = = yeurs from September zcc-
sufurlstyled tourlst hotel
Other miscellaneous concessions
Lxemptlon on lnterest lncome eurned from forelgn currency denomlnuted uccounts.
Cupltul gulns from sule of shures ls excluded from churgeublllty to lncome tux.
lncome j proflts from offshore dlvldends und lnterest ls exempt from lncome tux.
|o.; Income tax rates of offshore subsidiaries
Country of incorporation Rate
lndlu 'ohn leells loods lndlu (Pvt)Ltd. -c.
'ohn leells Alr Servlces lndlu (Pvt) Ltd. -c.
'ohn leells Loglstlcs lndlu (Pvt) Ltd. -c.
Serene Eollduys (Pvt) Ltd. -c.
Muurltlus Auxlcogent Alphu (Pvt) Ltd. -(Lffectlve)
Auxlcogent Eoldlngs (Pvt) Ltd. -(Lffectlve)
Auxlcogent lnternutlonul (Pvt) Ltd. -(Lffectlve)
Auxlcogent lnvestments Muurltlus (Pvt) Ltd. -(Lffectlve)
'ohn leells Eoldlngs Muurltlus (Pvt) Ltd. -(Lffectlve)
'ohn leells Eotels Muurltlus (Pvt) Ltd. -(Lffectlve)
leells lood Products Muurltlus (Pvt) Ltd. -(Lffectlve)
Republlc of Muldlves luntuseu vorld lnvestments (Pte) Ltd. Nll
1runqulllty (Pte) Ltd. Nll
1ruvel Club (Pte) Ltd. Nll
'ohn leells Muldlvlun Resorts (Pte) Ltd. Nll
Muck Alr Servlces Muldlves (Pte) Ltd. Nll
Slngupore 'ohn leells Slngupore (Pte) Ltd. , (Mux)
Unlted Arub Lmlrutes lnformutlon System Assoclutes Nll
Unlted llngdom 'ohn leells Computer Servlces (Ul) Ltd. -c
Unlted Stutes of Amerlcu Auxlcogent lnternutlonul US lnc. -=(Mux)
Compunles lncorporuted ln lndlu were subject to u lrlnge 8eneflt 1ux (l81), churged on selected expenses ut speclfled rutes, ugulnst euch
ltem of expense. Appllcuble rutes of l81 vurled from = to cc dependlng on the ltem of expense. 1he l81 hus however been ubollshed
from ljY zccjc.
z
|o.8 South Asia Cateway 1erminals (Private) Limited (SAC1)
1he proflts und lncome of SAC1, un ussoclute of 'lE, ure exempt from lncome 1ux under sectlon ,(z) of the 8ourd of lnvestment
of Srl Lunku (8Cl) Luw No. of ,8. 1hls exemptlon explres ln zc yeurs from c=th September , whlch wus the dute of
commencement.
1here hus been u dlfference of oplnlon between SAC1 und the 8Cl on the lnterpretutlon of the ugreement. 1he lssue hus slnce been
referred by the 8Cl to the Controller of Lxchunge who hus conflrmed to the 8Cl thut the posltlon tuken by SAC1 ls correct. SAC1
hus ulso dlrectly recelved conflrmutlon from the Controller of Lxchunge to thls effect.
Arlslng from thls dlfference of oplnlon, the Lepurtment of lnlund Revenue hus rulsed u tux ussessment on SAC1 for zcc,jzcc8. 1he
Munugement und lts 1ux consultunts ure of the oplnlon thut SAC1 hus fully complled wlth the 8Cl ugreement und hence the
beneflts under the 8Cl ugreement huve not been prejudlced ln uny munner. Accordlngly, the munugement und lts tux consultunts
ure of the oplnlon thut the ussessment by the Lepurtment of lnlund Revenue ls ultru vlres, wlth no busls ln luw or fuct und should
therefore be wlthdruwn. A formul uppeul hus been lodged.
Croup
|or tne year enJeJ ,st Varcn Note zoo zoo
ln s.'ooos
| LARNINCS PLR SBARL
|. 8asic earnings per share
Proflt uttrlbutuble to equlty holders of the purent <,zo,a ,,-z,-c
velghted uveruge number of ordlnury shures -.- 6<,8o 6z8,8
8uslc eurnlngs per shure 8.a< ,.=z
|.z Diluted earnings per share
Proflt uttrlbutuble to equlty holders of the purent <,zo,a ,,-z,-c
Adjusted welghted uveruge number of ordlnury shures -.- 6zo,|88 6z,c88
Llluted eurnlngs per shure 8.|8 ,.=z
Croup
ln s.'ooos
|.| Amount used as denominator
Crdlnury shures ut the beglnnlng of the yeur 6,|<| 6-=,=
Repurchuse of ordlnury shures (c,6z=)
Lffect of shure optlons exerclsed a,<|; -,6
velghted uveruge number of ordlnury shures ln lssue before dllutlon 6<,8o 6z8,8
Number of shures outstundlng under the shure optlon scheme z,;; --,c-
Number of shures thut would huve been lssued ut fulr vulue (z<,a;) (--,-c)
Adjusted welghted uveruge number of ordlnury shures 6zo,|88 6z,c88
|or tne year enJeJ ,st Varcn Rs. zoo Rs. zoo
ln s.'ooos
|z DIvIDLND PLR SBARL
Lquity dividend on ordinary shares
Declared and paid during the year
llnul dlvldend* .oo 6,|<| .cc 6-6,cc-
lnterlm dlvldend** z.oo ,z|z,z8 z.cc ,z,,-
1otul dlvldend |.oo ,8a|,6az -.cc ,88-,z
* Prevlous yeurs' flnul dlvldend puld ln the current yeur.
** 1hls lncludes second lnterlm dlvldend of Rs.6 mn puld on , Aprll zcc.
z=
|
|
S
L
C
M
L
N
1
I
N
I
O
R
M
A
1
I
O
N
|
|
.
P
r
i
m
a
r
y
s
e
g
m
e
n
t
s
(
b
u
s
i
n
e
s
s
s
e
g
m
e
n
t
s
)
1
r
a
n
s
p
o
r
t
a
t
i
o
n
L
e
i
s
u
r
e
P
r
o
p
e
r
t
y
C
o
n
s
u
m
e
r
I
o
o
d
s
&
R
e
t
a
i
l
I
i
n
a
n
c
i
a
l
S
e
r
v
i
c
e
s
I
n
f
o
r
m
a
t
i
o
n
1
e
c
h
n
o
l
o
g
y
O
t
h
e
r
s
C
r
o
u
p
1
o
t
a
l
A
s
a
t
,
s
t
V
a
r
c
n
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
l
n
s
.
o
o
o
s
s
t
a
t
e
J
s
t
a
t
e
J
P
r
o
p
e
r
t
y
,
p
l
u
n
t
u
n
d
e
q
u
l
p
m
e
n
t
;
z
<
,
6
8
,
,
6
,
8
<
o
,
6
a
,
=
8
,
a
8
8
c
6
,
8
|
,
6
<
6
,
;
z
-
,
,
8
c
,
,
o
;
o
,
<
,
=
,
6
,
;
,
;
a
a
z
,
c
,
8
z
<
,
z
o
<
6
z
,
-
6
z
;
,
o
|
;
,
z
o
;
z
6
,
z
8
,
z
8
L
e
u
s
e
h
o
l
d
p
r
o
p
e
r
t
y
a
,
<
z
z
,
z
;
,
,
,
,
,
<
a
,
<
6
o
=
=
,
a
,
<
;
6
,
6
8
;
,
,
,
=
,
,
z
l
n
v
e
s
t
m
e
n
t
p
r
o
p
e
r
t
l
e
s
a
o
,
o
c
,
c
6
a
,
z
6
6
,
z
,
-
,
,
6
6
,
o
o
o
,
,
c
c
c
<
,
a
8
<
,
z
z
6
=
,
6
6
,
8
z
l
n
t
u
n
g
l
b
l
e
u
s
s
e
t
s
|
|
,
;
z
|
z
,
,
o
8
a
z
,
z
8
,
=
c
c
<
;
,
z
|
;
,
a
<
o
z
,
z
|
,
<
a
8
z
,
-
z
c
,
C
t
h
e
r
l
n
v
e
s
t
m
e
n
t
s
;
<
,
=
z
<
,
o
6
|
z
=
,
c
=
,
,
z
;
o
c
=
-
,
c
c
8
,
|
o
8
,
6
6
,
,
c
,
,
z
=
c
,
<
o
;
8
c
,
c
,
6
8
,
a
<
,
z
6
8
,
,
=
,
6
c
-
C
t
h
e
r
n
o
n
c
u
r
r
e
n
t
u
s
s
e
t
s
a
z
,
|
o
,
=
a
6
,
a
6
6
c
,
,
8
6
o
6
,
<
=
,
8
,
6
|
8
o
,
z
a
6
8
=
,
6
=
<
<
,
8
6
|
=
,
-
,
|
z
,
a
z
8
-
8
,
z
z
-
<
6
,
8
6
a
,
,
,
6
c
,
;
z
a
,
;
,
,
,
c
c
c
l
n
t
e
r
c
o
m
p
u
n
y
l
e
n
d
l
n
g
a
|
,
<
o
-
,
=
c
,
6
a
6
,
|
z
6
z
,
z
6
=
,
,
=
=
=
c
,
c
c
c
|
,
<
z
8
6
,
c
c
z
;
6
,
o
o
o
6
,
c
c
c
,
;
6
,
8
o
a
z
,
=
-
6
,
,
c
,
S
e
g
m
e
n
t
n
o
n
c
u
r
r
e
n
t
a
s
s
e
t
s
8
a
6
,
|
;
8
,
,
,
c
z
;
,
z
|
o
,
z
z
,
,
6
-
c
,
8
6
<
,
6
8
<
,
a
;
=
,
,
-
,
6
6
6
a
,
o
|
;
,
o
|
8
,
z
6
8
,
z
,
o
a
,
8
o
|
,
8
z
6
,
,
o
,
8
,
z
,
c
,
z
o
8
,
<
8
6
z
,
c
-
<
,
z
a
8
,
a
o
<
=
z
,
,
z
,
,
l
n
v
e
s
t
m
e
n
t
s
l
n
u
s
s
o
c
l
u
t
e
s
o
,
<
;
,
8
6
z
c
,
8
c
,
,
c
-
6
,
8
z
,
;
z
,
-
z
-
,
<
6
8
8
,
6
6
;
,
6
a
;
a
,
|
o
8
6
z
,
6
l
n
v
e
s
t
m
e
n
t
l
n
s
u
b
s
l
d
l
u
r
l
e
s
u
n
d
j
o
l
n
t
v
e
n
t
u
r
e
<
,
<
=
,
=
L
e
f
e
r
r
e
d
t
u
x
u
s
s
e
t
s
8
z
,
z
<
z
,
,
8
6
C
o
o
d
w
l
l
l
|
6
,
<
;
-
,
,
z
c
L
l
l
m
l
n
u
t
l
o
n
s
j
u
d
j
u
s
t
m
e
n
t
s
(
,
o
8
)
(
z
,
,
8
6
,
,
)
1
o
t
a
l
n
o
n
c
u
r
r
e
n
t
a
s
s
e
t
s
6
a
,
o
z
,
a
<
;
6
-
,
,
6
c
c
l
n
v
e
n
t
o
r
l
e
s
z
|
6
,
a
;
;
,
,
-
c
z
a
8
,
;
8
z
z
z
,
6
c
<
,
8
;
o
z
8
-
,
=
-
,
<
6
,
;
z
|
,
-
,
<
,
6
8
,
c
8
-
8
<
,
a
<
;
z
,
8
,
o
z
z
,
6
,
z
z
,
|
<
,
o
8
6
z
,
z
,
,
,
-
l
n
v
e
s
t
m
e
n
t
s
h
e
l
d
f
o
r
s
u
l
e
,
z
,
z
1
r
u
d
e
&
o
t
h
e
r
r
e
c
e
l
v
u
b
l
e
s
,
<
a
8
,
z
,
,
-
c
z
6
,
<
z
|
,
a
a
o
,
=
c
-
,
8
6
-
|
6
o
,
8
z
=
,
c
,
,
,
o
;
<
,
-
z
,
8
o
<
,
a
6
o
z
,
8
6
6
,
c
z
;
o
,
8
z
|
,
z
,
,
a
a
o
,
<
6
|
,
-
8
6
,
8
=
a
,
6
o
,
<
<
o
z
,
S
h
o
r
t
t
e
r
m
l
n
v
e
s
t
m
e
n
t
s
|
|
;
,
z
8
o
c
z
,
=
6
8
|
,
|
6
-
,
=
,
a
;
,
<
8
8
,
-
,
c
=
6
6
z
,
a
8
a
|
,
6
|
,
|
|
,
6
,
,
6
<
a
,
o
|
,
c
,
=
6
o
,
a
a
<
,
o
a
,
6
,
8
,
-
,
,
|
o
o
,
<
6
=
,
-
,
,
-
,
C
u
s
h
l
n
h
u
n
d
u
n
d
u
t
b
u
n
k
;
a
8
,
8
z
,
6
,
c
=
c
,
z
6
6
,
a
z
8
c
z
,
=
-
=
a
z
,
a
<
,
8
,
<
a
6
8
,
c
8
6
<
a
z
,
6
8
,
6
c
<
8
,
<
6
|
8
c
z
|
-
8
,
=
8
8
z
,
a
<
8
c
,
S
e
g
m
e
n
t
c
u
r
r
e
n
t
a
s
s
e
t
s
z
,
8
;
o
,
a
;
z
,
6
=
=
,
6
=
c
,
a
z
,
;
<
<
=
,
,
=
8
6
,
|
<
6
,
;
,
z
,
z
,
8
|
6
,
8
z
|
z
,
6
,
8
,
,
=
;
,
|
6
,
6
a
o
,
=
8
,
6
-
,
a
6
8
,
a
6
,
6
=
,
c
z
,
z
<
,
8
z
;
-
,
-
c
,
6
8
,
<
;
<
,
;
|
;
-
z
,
,
z
1
u
x
r
e
f
u
n
d
s
,
6
6
;
,
;
z
c
c
,
,
-
L
l
l
m
l
n
u
t
l
o
n
s
j
u
d
j
u
s
t
m
e
n
t
s
(
6
,
6
;
;
,
o
<
;
)
(
,
8
c
,
,
=
z
)
1
o
t
a
l
c
u
r
r
e
n
t
a
s
s
e
t
s
|
a
,
<
6
<
,
8
<
z
z
8
,
,
8
,
6
-
1
o
t
a
l
a
s
s
e
t
s
8
,
6
<
8
,
|
o
z
,
c
,
c
6
-
l
n
s
u
r
u
n
c
e
P
r
o
v
l
s
l
o
n
z
,
a
<
,
<
;
6
,
c
z
=
,
6
z
,
a
<
,
<
;
6
,
c
z
=
,
6
N
o
n
l
n
t
e
r
e
s
t
b
e
u
r
l
n
g
b
o
r
r
o
w
l
n
g
s
;
<
o
8
=
,
=
c
,
6
a
6
,
|
z
6
z
,
-
=
,
z
,
;
z
6
,
z
;
6
z
,
,
z
z
l
n
t
e
r
e
s
t
b
e
u
r
l
n
g
b
o
r
r
o
w
l
n
g
s
8
6
,
;
a
,
z
=
z
|
,
a
z
o
,
<
8
z
-
,
8
-
6
,
-
=
a
<
=
z
o
o
,
8
;
-
8
c
,
-
c
c
6
,
8
8
6
a
c
,
=
8
,
c
8
=
o
,
<
;
,
a
a
,
8
8
L
m
p
l
o
y
e
e
b
e
n
e
f
l
t
l
l
u
b
l
l
l
t
y
6
z
,
8
8
<
,
,
z
=
z
8
8
,
z
6
c
,
,
z
z
|
,
z
6
o
z
6
,
=
c
6
|
z
<
,
;
;
<
z
8
6
,
-
o
a
,
o
6
,
,
-
c
6
;
,
|
6
z
6
8
,
8
=
|
<
6
,
z
,
o
a
,
|
<
=
6
,
,
C
t
h
e
r
d
e
f
e
r
r
e
d
l
l
u
b
l
l
l
t
l
e
s
z
,
<
;
|
z
,
8
z
,
o
8
z
z
,
z
6
a
,
6
<
<
=
,
6
,
C
t
h
e
r
n
o
n
c
u
r
r
e
n
t
l
l
u
b
l
l
l
t
l
e
s
6
,
a
o
z
,
,
=
,
6
6
,
a
o
z
,
,
=
,
6
S
e
g
m
e
n
t
n
o
n
c
u
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
z
z
,
<
;
6
z
8
<
,
|
<
8
,
|
o
6
,
=
,
z
,
,
a
o
<
z
6
,
6
=
;
a
z
,
,
z
,
|
,
o
a
,
6
a
<
z
z
,
z
-
6
;
,
|
6
z
6
8
,
8
=
;
,
o
<
z
,
|
8
c
,
6
6
,
=
=
z
6
,
<
|
,
;
<
z
z
,
=
8
z
,
6
=
,
L
e
f
e
r
r
e
d
t
u
x
l
l
u
b
l
l
l
t
l
e
s
;
8
,
;
a
z
,
,
,
,
z
-
6
L
l
l
m
l
n
u
t
l
o
n
s
j
u
d
j
u
s
t
m
e
n
t
s
(
,
;
6
6
,
z
;
<
)
(
z
,
=
6
c
,
z
z
)
1
o
t
a
l
n
o
n
c
u
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
z
<
,
<
a
;
,
z
z
,
,
,
,
6
=
1
r
u
d
e
&
o
t
h
e
r
p
u
y
u
b
l
e
s
;
6
,
o
6
6
6
-
,
,
=
z
z
,
6
|
,
<
z
o
,
8
6
6
,
c
-
|
8
,
6
8
o
=
z
z
,
-
=
=
z
,
<
z
,
8
|
,
8
8
,
,
c
z
,
o
<
,
,
8
-
,
;
|
<
=
,
,
c
,
6
6
<
,
,
6
o
,
;
8
,
8
|
o
8
,
z
8
,
S
h
o
r
t
t
e
r
m
b
o
r
r
o
w
l
n
g
s
|
,
|
o
,
,
z
a
,
a
8
,
;
z
;
z
,
8
=
z
,
,
,
|
z
-
z
,
8
c
z
o
6
a
6
=
,
z
c
o
,
<
z
8
-
,
=
,
=
|
|
<
,
o
;
a
z
=
,
c
,
<
,
z
z
8
,
-
,
,
,
=
C
u
r
r
e
n
t
p
o
r
t
l
o
n
o
f
l
n
t
e
r
e
s
t
b
e
u
r
l
n
g
b
o
r
r
o
w
l
n
g
s
|
z
,
z
z
-
8
,
6
8
a
,
;
6
8
c
,
-
a
o
,
;
<
;
,
8
,
z
=
,
|
,
o
o
,
8
z
z
,
,
z
z
8
a
,
6
8
,
;
6
,
8
,
,
=
L
l
v
l
d
e
n
d
p
u
y
u
b
l
e
,
a
<
<
6
,
a
<
<
8
u
n
k
o
v
e
r
d
r
u
f
t
s
;
8
-
-
,
=
8
,
6
z
a
,
8
a
;
z
,
=
z
,
c
8
a
,
o
|
6
-
6
,
6
<
|
z
,
;
8
6
8
,
8
8
-
z
<
,
8
;
6
8
8
,
z
<
,
|
,
8
=
z
z
,
z
z
;
,
-
=
,
8
z
z
,
<
;
6
,
|
a
|
,
8
z
6
S
e
g
m
e
n
t
c
u
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
,
z
8
z
,
;
;
;
-
c
,
6
c
6
,
;
|
,
z
;
o
8
,
c
,
,
-
6
6
,
o
a
,
o
a
<
=
z
,
c
z
|
,
|
<
,
<
|
8
z
,
z
,
;
;
,
8
;
a
c
,
6
,
c
;
<
,
6
<
6
,
z
c
,
=
-
a
,
;
a
,
<
;
<
-
,
z
-
,
8
-
6
z
|
,
<
;
,
;
|
<
8
,
c
,
z
,
-
l
n
c
o
m
e
t
u
x
l
l
u
b
l
l
l
t
l
e
s
a
<
a
,
z
z
=
,
-
6
z
L
l
l
m
l
n
u
t
l
o
n
s
j
u
d
j
u
s
t
m
e
n
t
s
(
;
,
;
6
,
;
z
o
)
(
,
,
8
c
,
8
8
)
1
o
t
a
l
c
u
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
6
,
8
a
,
|
o
;
-
,
8
,
-
,
6
,
1
o
t
a
l
l
i
a
b
i
l
i
t
i
e
s
a
z
,
|
6
,
<
z
6
,
6
,
-
,
z
8
1
o
t
u
l
s
e
g
m
e
n
t
u
s
s
e
t
s
|
,
;
;
,
|
z
<
-
,
6
c
-
,
6
z
c
|
8
,
6
<
a
;
-
-
,
6
z
=
,
=
,
z
;
,
o
a
z
,
z
6
,
,
c
6
=
,
=
,
6
,
8
;
|
,
8
6
6
,
,
,
-
8
8
,
|
6
6
,
a
a
|
6
,
-
=
,
-
8
=
,
6
<
|
;
,
8
,
,
,
z
8
c
|
,
<
o
a
,
a
=
,
-
8
z
,
=
o
,
8
z
a
,
a
z
8
,
8
,
,
-
6
1
o
t
u
l
s
e
g
m
e
n
t
l
l
u
b
l
l
l
t
l
e
s
,
<
z
,
|
<
|
,
z
z
,
c
6
,
<
,
o
8
,
6
6
o
,
=
6
,
6
-
,
z
<
,
a
<
o
6
8
,
,
=
-
a
,
|
8
,
<
|
-
,
z
z
,
-
c
<
,
z
z
;
,
<
z
,
z
6
-
,
=
,
z
a
|
,
o
,
z
,
,
c
,
;
6
6
,
<
6
-
,
c
,
<
o
,
o
|
,
a
8
;
,
,
,
z
z
,
-
c
z6
|
|
.
z
P
r
i
m
a
r
y
s
e
g
m
e
n
t
s
(
b
u
s
i
n
e
s
s
s
e
g
m
e
n
t
s
)
1
r
a
n
s
p
o
r
t
a
t
i
o
n
L
e
i
s
u
r
e
P
r
o
p
e
r
t
y
C
o
n
s
u
m
e
r
I
o
o
d
s
&
R
e
t
a
i
l
I
i
n
a
n
c
i
a
l
S
e
r
v
i
c
e
s
I
n
f
o
r
m
a
t
i
o
n
1
e
c
h
n
o
l
o
g
y
O
t
h
e
r
s
C
r
o
u
p
1
o
t
a
l
|
o
r
t
n
e
y
e
a
r
e
n
J
e
J
,
s
t
V
a
r
c
n
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
z
o
o
l
n
s
.
o
o
o
s
1
o
t
u
l
r
e
v
e
n
u
e
,
;
8
<
,
a
o
8
,
,
6
,
6
z
,
<
|
8
,
<
c
,
z
=
,
,
6
,
8
z
,
a
;
,
,
,
,
,
6
,
|
;
,
6
o
<
8
z
,
8
c
-
<
,
|
|
z
,
z
8
6
=
c
,
<
,
|
o
,
,
,
8
|
,
|
a
;
,
6
6
z
,
6
-
6
,
-
,
<
o
,
;
a
z
,
-
,
,
=
,
l
n
t
r
u
s
e
g
m
e
n
t
r
e
v
e
n
u
e
,
o
,
;
<
)
(
6
=
,
6
)
(
,
;
z
6
)
(
z
,
,
-
6
)
(
|
<
,
<
z
)
(
-
c
,
,
-
6
)
(
;
;
)
(
6
,
<
<
8
)
(
6
,
=
-
8
)
(
;
;
,
z
a
a
)
(
=
c
,
6
,
8
)
(
,
<
o
o
,
;
;
)
(
8
6
,
-
z
)
S
e
g
m
e
n
t
r
e
v
e
n
u
e
,
;
8
<
,
a
o
8
,
,
6
,
6
,
<
8
,
;
6
,
6
,
,
8
-
=
,
8
,
;
a
<
,
,
,
<
,
z
z
,
o
8
a
,
z
,
c
6
,
<
,
|
|
z
,
=
c
,
<
z
,
;
a
|
,
,
6
,
8
8
c
|
,
z
;
o
,
|
;
z
z
,
=
8
6
,
z
=
,
z
a
,
z
z
z
z
,
=
,
z
=
l
n
t
e
r
s
e
g
m
e
n
t
r
e
v
e
n
u
e
(
z
o
,
;
<
6
)
(
z
,
-
,
8
-
=
)
(
,
o
z
)
(
,
,
8
,
)
(
,
;
<
)
(
6
,
c
8
z
)
(
;
8
,
<
;
)
(
,
8
6
-
)
(
6
,
8
<
8
)
(
,
8
z
,
)
(
<
|
,
;
z
)
(
,
-
=
)
(
a
a
,
<
<
)
(
8
z
,
z
8
6
)
(
,
z
6
,
z
8
)
(
,
z
,
,
z
=
)
R
e
v
e
n
u
e
,
a
a
,
6
<
z
z
,
8
,
a
,
;
|
z
,
6
6
z
,
-
,
6
z
o
,
o
|
o
,
=
,
8
,
-
z
<
,
8
a
|
,
a
8
;
-
c
,
z
c
<
,
z
6
z
,
z
<
,
-
,
a
|
,
o
|
,
6
c
=
,
=
-
=
z
,
8
z
o
,
8
z
z
,
c
-
,
,
-
a
;
,
8
o
,
o
o
a
,
c
z
z
,
=
z
c
S
e
g
m
e
n
t
r
e
s
u
l
t
s
;
<
,
a
<
z
-
=
,
a
a
,
8
8
;
6
c
,
6
=
|
6
<
,
=
=
6
,
c
,
a
o
|
,
z
a
z
,
6
8
a
|
,
6
6
;
(
,
=
8
,
8
z
|
(
z
,
8
-
-
)
a
,
<
o
;
(
8
c
6
)
z
,
a
a
,
a
,
,
=
-
,
=
-
,
L
l
l
m
l
n
u
t
l
o
n
s
<
;
,
a
a
a
6
a
|
,
|
z
z
z
,
z
z
,
a
z
(
=
,
8
,
c
)
6
,
<
6
|
8
8
|
,
<
8
;
z
,
z
,
-
;
,
;
z
,
=
,
8
z
,
z
a
6
,
|
o
6
z
,
6
z
,
z
,
a
o
;
,
a
|
z
z
,
8
z
6
,
c
6
-
l
l
n
u
n
c
e
e
x
p
e
n
s
e
s
(
z
<
,
a
a
z
)
(
=
-
,
c
6
)
(
a
;
|
,
8
<
a
)
(
c
,
6
)
(
o
,
6
z
)
z
,
,
6
(
,
6
6
;
)
(
z
=
,
-
)
z
o
,
8
o
(
z
-
)
(
z
,
a
;
)
(
-
,
=
6
)
(
;
a
6
,
;
a
)
(
-
=
,
6
z
)
(
,
|
;
o
,
<
6
)
(
,
6
=
,
)
C
h
u
n
g
e
l
n
f
u
l
r
v
u
l
u
e
o
f
l
n
v
e
s
t
m
e
n
t
p
r
o
p
e
r
t
l
e
s
,
z
6
,
-
c
,
=
,
-
S
h
u
r
e
o
f
r
e
s
u
l
t
s
o
f
u
s
s
o
c
l
u
t
e
s
z
,
<
8
,
|
<
,
c
-
-
z
,
o
8
8
,
z
-
8
(
|
,
<
o
8
)
(
z
,
,
6
c
8
)
(
,
8
z
)
,
c
,
,
6
z
,
<
<
<
,
8
6
;
z
,
-
c
,
z
,
P
r
o
f
l
t
o
n
s
u
l
e
o
f
n
o
n
c
u
r
r
e
n
t
l
n
v
e
s
t
m
e
n
t
s
,
c
z
=
,
,
,
,
c
z
=
,
,
,
P
r
o
f
i
t
j
(
l
o
s
s
)
b
e
f
o
r
e
t
a
x
z
,
|
6
<
,
8
<
6
z
,
z
8
,
,
,
o
,
|
<
<
-
-
,
-
,
|
;
8
,
z
|
=
-
=
,
-
=
z
8
8
,
o
z
o
z
,
8
,
-
-
,
8
6
8
,
|
a
z
8
=
,
8
|
,
6
6
(
-
z
)
,
6
z
,
z
;
z
,
6
z
,
6
,
<
|
;
,
<
<
<
6
,
z
,
z
c
1
u
x
e
x
p
e
n
s
e
(
8
|
,
<
;
a
)
(
6
z
,
8
8
)
(
|
;
,
o
)
(
=
,
-
8
)
(
|
6
,
|
<
)
(
,
c
)
(
z
o
o
,
|
|
)
(
=
,
,
-
)
(
|
|
8
,
6
|
8
)
(
6
,
,
z
6
)
a
,
o
z
a
(
=
,
,
-
=
)
(
z
z
,
a
8
8
)
(
z
z
,
6
c
=
)
(
8
<
,
z
a
o
)
(
,
-
z
6
,
=
c
)
P
r
o
f
i
t
j
(
l
o
s
s
)
f
o
r
t
h
e
y
e
a
r
z
,
z
8
z
,
z
8
z
,
6
=
,
,
6
c
c
;
|
,
a
a
<
z
8
,
c
=
6
|
a
z
a
8
6
,
-
8
;
,
6
8
,
c
z
-
<
z
,
;
o
a
-
-
,
-
;
,
6
a
o
(
6
,
,
6
,
)
,
|
,
6
|
z
,
-
,
=
,
<
,
<
<
z
,
|
<
,
6
=
c
A
t
t
r
i
b
u
t
a
b
l
e
t
o
:
L
q
u
l
t
y
h
o
l
d
e
r
s
o
f
t
h
e
p
u
r
e
n
t
z
,
z
<
8
,
8
,
6
z
=
,
6
z
8
|
,
o
a
;
z
-
,
8
6
z
z
,
c
,
-
8
a
<
,
8
o
6
8
-
,
=
8
a
;
;
,
6
o
z
-
-
z
,
8
-
-
;
,
6
a
o
(
6
,
,
6
,
)
,
z
6
,
a
6
z
,
-
z
-
,
=
z
8
<
,
z
o
,
a
,
,
-
z
,
-
c
M
l
n
o
r
l
t
y
l
n
t
e
r
e
s
t
z
|
,
a
6
a
-
,
6
-
8
8
o
,
|
,
8
,
c
a
,
8
<
,
6
,
c
c
a
,
8
;
<
-
,
,
z
<
z
,
o
z
6
,
-
o
|
,
;
o
,
6
,
c
6
|
<
o
,
8
z
a
z
-
z
,
-
6
z
,
z
8
z
,
z
8
z
,
6
=
,
,
6
c
c
;
|
,
a
a
<
z
8
,
c
=
6
|
a
z
a
8
6
,
-
8
;
,
6
8
,
c
z
-
<
z
,
;
o
a
-
-
,
-
;
,
6
a
o
(
6
,
,
6
,
)
,
|
,
6
|
z
,
-
,
=
,
<
,
<
<
z
,
|
<
,
6
=
c
P
u
r
c
h
u
s
e
u
n
d
c
o
n
s
t
r
u
c
t
l
o
n
o
f
p
r
o
p
e
r
t
y
,
p
l
u
n
t
&
e
q
u
l
p
m
e
n
t
<
|
,
|
o
<
c
-
,
,
z
8
,
|
6
a
,
z
z
,
8
6
<
,
;
6
|
z
6
,
;
,
8
,
=
-
;
,
8
<
-
,
|
,
z
6
6
,
-
c
6
,
a
,
8
8
-
,
;
8
,
<
,
6
c
6
P
u
r
c
h
u
s
e
u
n
d
c
o
n
s
t
r
u
c
t
l
o
n
o
f
l
n
t
u
n
g
l
b
l
e
u
s
s
e
t
s
a
o
,
|
8
|
z
-
,
c
|
o
,
6
o
|
;
o
,
8
6
z
-
,
c
L
e
p
r
e
c
l
u
t
l
o
n
o
f
p
r
o
p
e
r
t
y
,
p
l
u
n
t
&
e
q
u
l
p
m
e
n
t
o
;
,
8
8
6
,
c
,
6
o
,
c
c
o
,
<
<
c
,
|
8
o
,
8
;
o
-
6
z
,
6
c
,
8
;
,
;
<
|
,
-
=
a
;
,
a
o
6
,
z
6
,
a
8
z
c
,
;
|
6
,
8
<
|
,
6
c
,
A
m
o
r
t
l
s
u
t
l
o
n
o
f
l
n
t
u
n
g
l
b
l
e
u
s
s
e
t
s
a
,
z
;
8
;
,
a
<
,
|
a
<
,
8
<
,
;
z
,
;
<
,
8
A
m
o
r
t
l
s
u
t
l
o
n
j
d
e
p
r
e
c
l
u
t
l
o
n
o
f
l
e
u
s
e
h
o
l
d
p
r
o
p
e
r
t
y
u
n
d
o
t
h
e
r
n
o
n
c
u
r
r
e
n
t
u
s
s
e
t
s
,
a
<
,
=
6
|
,
a
z
;
,
8
-
,
,
|
8
,
-
8
a
,
|
o
|
z
z
,
,
6
C
r
u
t
u
l
t
y
p
r
o
v
l
s
l
o
n
u
n
d
r
e
l
u
t
e
d
c
o
s
t
s
6
,
8
|
;
6
,
-
c
<
8
8
=
8
,
-
c
|
,
,
=
8
<
,
8
,
,
=
=
8
z
6
,
6
|
<
z
,
8
=
a
,
o
|
;
,
z
o
;
z
=
,
c
,
6
<
6
=
,
,
8
8
l
m
p
u
l
r
m
e
n
t
l
o
s
s
e
s
j
r
e
v
e
r
s
u
l
o
f
l
m
p
u
l
r
m
e
n
t
l
o
s
s
e
s
=
-
,
c
z
|
,
o
6
;
-
=
,
z
z
a
,
;
;
;
|
,
z
,
c
c
c
z
o
,
<
<
c
c
,
-
A
m
o
r
t
l
s
u
t
l
o
n
o
f
o
t
h
e
r
d
e
f
e
r
r
e
d
l
l
u
b
l
l
l
t
l
e
s
|
z
<
-
z
=
8
;
-
-
<
z
z
,
z
=
8
l
n
u
d
d
l
t
l
o
n
t
o
s
e
g
m
e
n
t
r
e
s
u
l
t
s
,
l
n
f
o
r
m
u
t
l
o
n
s
u
c
h
u
s
f
l
n
u
n
c
e
e
x
p
e
n
s
e
s
,
t
u
x
e
x
p
e
n
s
e
s
h
u
s
b
e
e
n
u
l
l
o
c
u
t
e
d
t
o
s
e
g
m
e
n
t
s
f
o
r
b
e
t
t
e
r
p
r
e
s
e
n
t
u
t
l
o
n
.
z,
||.| Secondary segments (geographical segments, based on the location of assets)
Sri Lanka Asia (excluding Sri Lanka) Others Croup 1otal
zoo zoo zoo zoo zoo zoo zoo zoo
estateJ estateJ
ln s. ooos
Segment ussets ;a,z;,z6 6,,,-=,,6 <,6|,a<8 =,6,,c= ,oo|,a68 ,=,=== o,8za,az 8,8,,-6
Segment llubllltles |;,6a8,86 -,8,z,68c ,<8,< ,,6,8c= 86a,<86 8,-,= <o,o|,a8; ,,,zz,-c
lnvestment ln ussoclutes |,|,z|o z,-,c-c o,<6 88,66 a,|o,86 z,,,6
Segment revenue a|,88,<8 -,,,z,,c=6 <,z6|,|8z ,,6 6,68z =,,czc a,za,zzz z,=,z=
Segment results z,<8;,8o ,6cz,88 |<o,aa< ,6,=z 6,66 (z=,8,6) z,aa,az ,,=-,=-,
Purchuse und constructlon of
property, plunt und equlpment ,6<z,|; =,,c=, za,o;o ,z-,z- <,<| -8 ,;8,<a ,,6c6
Purchuse und constructlon
of lntunglble ussets 6z,z6a 8,;zz z-,c ;o,86 z-,c
Lepreclutlon of property,
plunt und equlpment ,|o8,|; ,zcz,c aza,za| 8,== a,z| -,6 ,;|6,8<| ,6c,
Amortlsutlon of
lntunglble ussets zo;,aa <,|a< ,8 zz,;< ,8
Amortlsutlonjdepreclutlon
of leusehold property und
other noncurrent ussets 8o,6 ,,cz ||,68a =,,-= |a,|o| zz,,6
Crutulty provlslon und
reluted costs 8,z| 6-,z (|) z,= z,a6 ,6< 6=,,88
lmpulrment lossesjreversul
of lmpulrment losses 6,;8 cc,- a,;;; zo,<< cc,-
Amortlsutlon of other
deferred llubllltles <z z,z=8 <z z,z=8
|a RLLA1LD PAR1Y 1RANSAC1IONS
1he compuny currled out trunsuctlons ln the ordlnury course of buslness ut commerclul rutes wlth the followlng reluted entltles.
1he llst of dlrectors ut euch of the subsldlury und ussoclute compunles huve been dlsclosed ln the group dlrectory.
Croup Company
ln s. ooos
|a. Amounts due from related parties
Subsldlurles -.- <|,686 ,,==
'olnt ventures z,o6
Assoclutes ,;| zz,z ,8 8c=
Compunles under common control
ley munugement personnel (lMP)
Close fumlly members of lMP
Compunles controlled j jolntly controlled j slgnlflcuntly
lnfluenced by lMP und thelr close fumlly members
Post employment beneflt plun
zz,88 zz,z <|z,88a zcc,=6c
|a.z Amounts due to related parties
Subsldlurles -.- |,oo =,6
'olnt ventures 6,,
Assoclutes |,6|
Compunles under common control
ley munugement personnel
Close fumlly members of lMP
Compunles controlled j jolntly controlled j slgnlflcuntly
Post employment beneflt plun
|,6| 6,, |,oo =,6
z8
Company
Amounts due from Amounts due to
As at |st March zoo zoo zoo zoo
ln Rs. cccs
|a.| Subsidiaries
Aslun Eotels und Propertles PLC. |,;z ,z6
Auxlcogent lnternutlonul Lunku (Pvt) Ltd. z,a|< z,--
Auxlcogent lnvestments Muurltlus (Pvt) Ltd. -
Ceylon Cold Stores PLC. <,aa< c,=,
Ceylon Eollduy Resorts Ltd. ,<|< ,=
LEL leells (Pvt) Ltd. ,az 8,6
luntuseu vorld lnvestments (Pte) Ltd. |
Euburunu Lodge Ltd. ,a| ,z
Euburunu vulk lnn Ltd. ,z|a ,6
lnfoMute (Pvt) Ltd. 6,azo 8,c8,
lnternutlonul 1ourlsts & Eotellers Ltd. < 8
'uyluy Murketlng Servlces (Pvt) Ltd. 6,6a8 z,z,
'ohn leells Alr Servlces (Pvt) Ltd. |<| 8=
'ohn leells Computer Servlces (Pvt) Ltd. ao ,z=
'ohn leells Eotels PLC. zaa 6cc
'ohn leells lnternutlonul (Pvt) Ltd. ,;z8 ,=c
'ohn leells Loglstlcs (Pvt) Ltd. a; -z,
'ohn leells Loglstlcs lndlu (Pvt) Ltd. |,z|o z,zz
'ohn leells Loglstlcs Lunku (Pvt) Ltd. o,6a ,c8
'ohn leells Muldlvlun Resorts (Pte) Ltd. 6 z6
'ohn leells Cfflce Automutlon (Pvt) Ltd. |,aaa 8,z
'ohn leells PLC. z,az =,6
'ohn leells Softwure 1echnologles (Pvt) Ltd.
'ohn leells Stock 8rokers (Pvt) Ltd. ,
'ohn leells 1eus Ltd. za8
'ohn leells vurehouslng (Pvt) Ltd. z68 z8,
lundy vulk lnn Ltd. ,z6| ,c8=
leells Consultunts Llmlted. - <6
leells lood Products PLC. <,|6o =,6
leells Eotel Munugement Serlvces Ltd. z,a ,z=
leells Reultors Ltd. zz z6c
leells Shlpplng (Pvt) Ltd. ,<6z
Lunku Murlne Servlces (Pvt) Ltd. -,6-
Muck Alr (Pvt) Ltd. ,8a< -6-
Muck Alr Servlces Muldlves( Pte) Ltd. 88 zc
Mucklnnon & leells llnunclul Servlces Ltd. ,|z 6,86-
Mucklnnon Muckenzle und Compuny (Shlpplng) Ltd. 6
Mucklnnon Muckenzle und Compuny of Ceylon Ltd. z,
Mucklnnons 1ruvels (Pvt) Ltd. <|< z-
Nexus Networks (Pvt) Ltd. za
Serene Eollduys (Pvt) Ltd. < --
1runs Aslu Eotels PLC. |,a|; 8
1runswure Loglstlcs (Pvt) Ltd. < z
1runqulllty (Pte) Ltd. |6
1ruvel Club (Pte) Ltd. a
1rlnco Eollduy Resorts (Pvt) Ltd. z,;;
1rlnco vulk lnn Ltd. ,,=c |
Unlon Assurunce PLC. a8| ,
vulkers Alr Servlces Ltd. ,z-z
vulkers 1ours Ltd. z; z8-
vhlttull 8ousteud (Pvt) Ltd. a6 ,=
vhlttull 8ousteud (1ruvel) Ltd. aa
Yulu vllluge (Pvt) Ltd. 86 ,,,
Interest bearing loans
Ceylon Cold Stores PLC. 8,,=,
'uyluy Murketlng Servlces (Pvt) Ltd. 6a,6a ,6
'ohn leells lnternutlonul (Pvt) Ltd. <,ooo =,ccc
leells lood Products PLC. a<,ooo ,z,z
Mucklnnon & leells llnunclul Servlces Ltd. |,<z8 -,ccc
1rlnco vulk lnn Ltd. z,=cc
1rlnco Eollduy Resorts (Pvt) Ltd. 8z,<oo
<|,686 ,,== |,oo =,6
z
Croup Company
ln s.'ooos
|a.a 1ransactions with related parties
Subsidiaries
(Purchuses) j Sules of goods (z,<|;) (,8z,)
(Recelvlng) j Renderlng of servlces -.= a|,a8 ,=6,
(Purchuses) j Sule of property plunt & equlpment 8
Louns glven -.= a<a,oz8 8,,6
lnterest recelved j (lnterest puld) a6 -,z8
(Rent tuken) j Rent glven (6,oo) (-,=c)
(Cuuruntees tuken) j Cuuruntees glven ;6 ,=-
1oint ventures
(Recelvlng) j Renderlng of servlces z,za z-,,-
Associates
(Purchuses) j Sules of goods ;,8| =,-,
(Recelvlng) j Renderlng of servlces zz,6a< (-z,=,6) (|,oa8) (z,6)
lnterest recelved j (lnterest puld) -.6 a8;,6a =z6,86- |z,<o -c,6
key management personnel
(Recelvlng) j Renderlng of servlces o,azo -,8-
Close family members of kMP
(Recelvlng) j Renderlng of servlces 8
Companies controlled j [ointly controlled j significantly
(Purchuses) j Sules of goods (=,8)
Post employment benefit plan
Contrlbutlons to the provldent fund 6,zo ,,zc |a,<< -,,88-
Company
ln s.'ooos
|a.< 1ransactions with related parties Subsidiaries
(Receiving) j Rendering of services
LEL leells (Pvt) Ltd. 6,z<8 ,=6
leells Eotel Munugement Servlces Ltd. <,a6 =c,zc=
'uyluy Murketlng Servlces (Pvt) Ltd. ao,;6z -,c8
Ceylon Cold Stores PLC. |8,z| c,66
Aslun Eotels & Propertles PLC. 8,|o ,,-,,
'ohn leells PLC. 8,zoa z-,c6
leells lood Products PLC. ;,6z< 8,,8,
vulker 1ours Ltd. ;,aoa ,-=,
lnfomute (Pvt) Ltd. |,;z6 ,,z66
1runs Aslu Eotels PLC. |,6| ,,6
'ohn leells Cfflce Automutlon (Pvt) Ltd. ,z z,,,
'ohn leells Stock 8rokers (Pvt) Ltd. o,z;| ,z8c
Cther subsldlurles 8a,z< 8=,c
a|,a8 ,=6,
Loans given
'uyluy Murketlng Servlces (Pvt) Ltd. <o,ooo ,=,ccc
'ohn leells Loglstlcs Lunku (Pvt) Ltd. 8,ccc
'ohn leells Cfflce Automutlon (Pvt) Ltd. z,ooo =8,--
leells lood Products PLC. a<,ooo 6,,-c
Lunku Murlne Servlces (Pvt) Ltd. ,=,ccc
Mucklnnon & leells llnunclul Servlces Ltd. za,<z8 z,ccc
1runs Aslu Eotel PLC. ao,ooo
1rlnco Eollduy Resorts (Pvt) Ltd. 8z,<oo
a<a,oz8 8,,6
-c
Croup Company
ln s.'ooos
|a.6 1ransactions with related parties Associates
lnterest recelved j (lnterest puld)
Nutlons 1rust 8unk PLC. a8;,6a =z6,86- |z,<o -c,6
|a.; 1erms and conditions of transactions with related parties
1runsuctlons wlth reluted purtles ure currled out ln the ordlnury course of the buslness. Cutstundlng current uccount bulunces ut
yeur end ure unsecured, lnterest free und settlement occurs ln cush.
|a.8 Compensation of key management personnel
ley munugement personnel lnclude members of the 8ourd of dlrectors of 'ohn leells Eoldlngs PLC und lts subsldlury compunles.
Croup Company
ln s.'ooos
Shortterm employee beneflts ;,|; z-,,,, ;o,6|o -z,6-
Post employment beneflts
Cther longterm beneflts
1ermlnutlon beneflts <,8ao ,z <,8ao
Shure bused puyments
8;,z z-,zcc 86,a;o -z,6-
Directors' interest in the employee share option plan of the company
As ut - Murch zcc, the executlve members of the 8ourd of dlrectors held optlons to purchuse ordlnury shures under the employee
shure optlon plun us follows:
,z8,86 Crdlnury Shures ut u prlce of Rs. zc., euch, exerclsuble before zc
,-6,8cc Crdlnury Shures ut u prlce of Rs. 6.cc euch, exerclsuble before z,=zcz
,-z,,c=c Crdlnury Shures ut u prlce of Rs. zc.cc euch, exerclsuble before z-zc-
.c66,66c Crdlnury Shures ut u prlce of Rs. 6c.z= euch, exerclsuble before 6zzc
No shure optlons huve been grunted to the nonexecutlve members of the 8ourd of dlrectors under the employee shure optlon plun.
|< CON1INCLN1 LIA8ILI1ILS
1OBN kLLLLS BOLDINCS PLC (1kB)
1he Contlngent Llublllty of 'lE us ut - Murch zcc, relutes to the followlng:
CS1 & vA1 assessments for the year of assessment zoozjo| 1he compuny hus flled uppeuls ugulnst these ussessments und
these ure currently pendlng wlth the 8ourd of Revlew of the Lepurtment of lnlund Revenue.
Income tax assessment for the year of assessment zoo6jo; 1he compuny hus flled un uppeul ugulnst thls ussessment und ls
currently pendlng the heurlng of the Commlssloner Cenerul of lnlund Revenue.
Euvlng dlscussed wlth lndependent legul und tux experts und bused on lnformutlon uvulluble, the contlngent llublllty us ut -
Murch zcc ls estlmuted ut Rs. z- mn.
LANkA MARINL SLRvICLS (Pv1) LIMI1LD (LMS)
1he contlngent llublllty of LMS us ut - Murch zcc, relutes to the followlng:
value Added 1ax (vA1) refunds in dispute with the Department of Inland Revenue 1he compuny contends thut the supply of
bunkers to forelgn shlps constltutes un export thut quullfles for zero rutlng und thut lt ls entltled to u refund of vA1 puld on
lnputs. 1he Lepurtment of lnlund Revenue, whlch eurller uccepted the compuny's clulm, hud luter reversed lts posltlon.
Cplnlons fromlndependent tux consultunts und lndependent legul counsel ull support the compuny's posltlon und the compuny
ls now pursulng lts clulm ln uccordunce wlth the provlslons ln the vulue Added 1ux Act, No. of zccz for resolutlon of dlsputes.
1he uppeuls mude by the compuny ure currently wlth the Court of Appeul of Srl Lunku.
Post privatisation turnover tax levied by the Western Provincial Council 1he compuny hus ulso dlsputed thls on the busls thut
lts buslness uctlvlty ls thut of un export. 1he uppeul mude by the compuny ls pendlng further revlew by the vestern Provlnclul
Councll.
-
Lxcise Duty and vA1 claimed by Sri Lanka Customs on a single gas oil procurement from Ceylon Petroleum Corporation 1he
customs lnqulry wus held und consequently u showcuuse letter wus lssued. Eowever, the compuny mude un uppllcutlon to the
court of uppeul to quush the order mude by the lnqulrlng offlcer. 1he Court of Appeul lssued un order ln fuvour of the compuny
und ordered thut u fresh lnqulry be held, should there be uny dues to be recovered by Srl Lunku Customs. Subsequently,
Srl Lunku Customs held u fresh lnqulry to collect tuxes, to whlch the compuny rulsed objectlons on the busls thut Srl Lunku
Customs hud no uuthorlty to recover tuxes bused on two recent judgments dellvered by the Supreme Court of Srl Lunku.
Income tax assessment relating to year of assessment zoojoz Assessment wus recelved by the compuny bused on normul
tux rutes. 1he compuny hus uppeuled ugulnst thls ussessment on the grounds thut the sule of bunker to forelgn shlps ls un
export, whlch ls lluble to concesslonury rutes of tuxes, whlch hus been dlsputed by the Lepurtment of lnlund Revenue. 1he
uppeul mude by the compuny ls currently wlth the Court of Appeul of Srl Lunku.
Income 1ax Assessments relating to years of assessments zoo<jo6, zoo6jo; and zoo;jo8 Assessments were recelved ln
August zcc8 und Cctober zcc, consequent to the Supreme Court judgment, whereby the orlglnul 8Cl concesslons grunted
were unnulled. Although the ussessments were bused on normul tux rutes the compuny computed und puld lncome tuxes ut
concesslonury rutes of tuxes, bused on oplnlons fromlndependent legul counsel und tux consultunts, thut the supply of bunkers
to forelgn vessels ls un export und therefore ellglble to concesslonury rutes of tuxes us provlded ln the lnlund Revenue Act.
Appeuls huve been lodged ugulnst the bulunce tuxes ussessed und penultles churged by the lnlund Revenue. 1he uppeuls mude
by the compuny huve been referred to the 8ourd of Revlew.
Income 1ax Assessments relating to years of assessments zoozjo|, zoo|joa and zooajo< Assessments were recelved ln
'unuury zcc, once uguln bused on normul tux rutes. lt ls the vlew of the compuny, bused on oplnlons from lndependent legul
counsel und tux consultunts, thut the subject yeurs were stututorlly tlme burred us provlded ln the lnlund Revenue Act. 1he
uppeul mude by the Compuny ls currently before the Commlssloner Cenerul of lnlund Revenue for determlnutlon.
Euvlng dlscussed wlth lndependent legul und tux experts und bused on lnformutlon uvulluble, the contlngent llublllty
us ut - Murch zcc ls estlmuted ut Rs.zmn.
|6 CAPI1AL AND O1BLR COMMI1MLN1S
Croup
Cupltul und other commltments upproved und contructed us ut the bulunce sheet dute, not provlded for ln flnunclul stutements
umounts to Rs. z,6=z mn. Letulls ure glven below.
Croup
ln s. 'ooos
Aslun Eotels und Propertles PLC. Crescut Llvlslon ,;,<a| z,cz,=c6
Aslun Eotels und Propertles PLC. Clnnumon Crund ;|,zz c,,
Ceylon Cold Stores PLC. z6a,a6 ,-66
Euburunu Lodge Llmlted. z;,6<
lnternutlonul 1ourlsts & Eotellers Llmlted. |;,ooo
1rlnco Eollduy Resorts (Pvt) Llmlted. <z,a|
Company
1he compuny does not huve slgnlflcunt commltments us ut the bulunce sheet dute.
Croup
ln s. 'ooos
|; LLASL COMMI1MLN1S
Leuse rentuls due on noncuncelluble operutlng leuses:
vlthln one yeur 86,;; 8c-,8
8etween one und flve yeurs a,8z,|a -,-=,88
After flve yeurs |,6<,< ,c6,,-
,|a,8o 8,zcz,6z
-z
|;. Details of leases
Company Lessor Leased properties
Ceylon Cold Stores PLC. Colombo Llvlslonul Secreturlute Lund occupled.
Ceylon Eollduy Resorts Ltd.
8entotu 8euch Eotel. Srl Lunku 1ourlst bourd Lund occupled.
Corul Curdens Eotel. Srl Lunku 1ourlst bourd Lund occupled.
luntuseu vorld lnvestment (Pte) Ltd. Covernment of Muldlves Lund occupled.
Euburunu Lodge Ltd. leklruwu Llvlslonul Secreturlute Lund occupled.
Euburunu vulk lnn Ltd. leklruwu Llvlslonul Secreturlute Lund occupled.
'ohn leells Muldlvlun Resorts (Pte) Ltd. Covernment of Muldlves & u Sub Leuse wlth Lund occupled.
Yucht 1ours Muldlves (Pvt) Ltd.
'uykuy Murketlng Servlces (Pvt) Ltd. R.'. S. Lxports (Pvt) Ltd j R Abeywurdenu Lund occupled.
'ohn leells PLC. Colombo Llvlslonul Secreturlute Lund occupled.
Muck Alr Servlces Muldlves (Pte) Ltd. Stute 1rudlng Crgunlsutlon PLC. Cfflce spuce occupled.
1ruvel Club (Pte) Ltd. Covernment of Muldlves und u sub leuse Lund occupled.
wlth Llluldhoo lnvestments (Pte) Ltd.
1runqulllty (Pte) Ltd. Covernment of Muldlves Lund occupled.
Yulu vllluge ( Pvt) Ltd. Srl Lunku 1ourlst bourd Lund occupled.
|8 ASSL1S PLLDCLD
Share certificates pledged by 1ohn keells Boldings PLC
Pledged to Share certificates of No of shares
lnternutlonul llnunce Corporutlon Aslun Eotels & Propertles PLC. 6=,=-c,6z
lnternutlonul llnunce Corporutlon 'ohn leells Eotels PLC. 86z,z-,8,
lnternutlonul llnunce Corporutlon 1runs Aslu Eotels PLC. ,-z,c6
lnternutlonul llnunce Corporutlon Unlon Assurunce PLC. z6,z8,68
| PRIOR PLRIOD AD1US1MLN1
South Asia Cateway 1erminals (Private) Ltd (SAC1)
A trunsfer wus effected lust yeur from cullslnudvunce to retulned eurnlngs relutlng to the lnltlul proposed shure cupltul of the
Srl Lunku Ports Authorlty (SLPA). As the munugement of SAC1 ls currently ln dlscusslon wlth SLPA on how thls trunsfer should be
deult wlth, the umount clusslfled us retulned eurnlngs wus credlted to cullslnudvunce wlth retrospectlve effect. 1he group lmpuct
of thls trunsfer ls Rs..= mn und Rs.66 mn on the lncome stutement und the stutement of chunges ln equlty respectlvely.
ao POS1 8ALANCL SBLL1 LvLN1S
1he 8ourd of dlrectors of the compuny hus declured u flnul dlvldend of Rs..cc per shure for the flnunclul yeur ended - Murch zcc.
As requlred by sectlon =6 (z) of the Compunles Act No. c, of zcc,, the 8ourd of dlrectors hus conflrmed thut the compuny sutlsfles
the solvency test ln uccordunce wlth sectlon =, of the Compunles Act No. c, of zcc,,und hus obtulned u certlflcute from uudltors,
prlor to declurlng u flnul dlvldend whlch ls to be puld on c 'une zcc.
ln uccordunce wlth the Srl Lunku Accountlng Stundurd z (Revlsed zcc=), Lvents ufter the 8ulunce Sheet dute, the flnul dlvldend
hus not been recognlsed us u llublllty ln the flnunclul stutements us ut - Murch zcc.
--
C
o
n
s
u
m
e
r
I
i
n
a
n
c
i
a
l
I
n
f
o
r
m
a
t
i
o
n
L
l
i
m
i
n
a
t
i
o
n
s
j
s
.
m
i
l
l
i
o
n
s
1
r
a
n
s
p
o
r
t
a
t
i
o
n
L
e
i
s
u
r
e
P
r
o
p
e
r
t
y
I
o
o
d
s
&
R
e
t
a
i
l
S
e
r
v
i
c
e
s
1
e
c
h
n
o
l
o
g
y
O
t
h
e
r
s
1
o
t
a
l
A
d
[
u
s
t
m
e
n
t
s
C
r
o
u
p
1
o
t
a
l
|
o
r
t
n
e
y
e
a
r
e
n
J
e
J
,
V
a
r
c
n
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
o
z
c
c
z
o
z
c
c
D
i
r
e
c
t
e
c
o
n
o
m
i
c
v
a
l
u
e
g
e
n
e
r
a
t
e
d
R
e
v
e
n
u
e
,
;
8
<
,
,
z
,
<
|
c
,
z
,
8
z
,
,
,
,
6
,
|
8
-
<
,
|
|
z
=
c
,
<
,
,
,
|
,
|
a
8
z
,
6
-
,
<
o
,
;
a
z
-
,
(
z
,
;
6
z
)
(
z
,
=
8
)
a
;
,
8
o
8
6
.
,
c
z
-
8
=
.
c
8
l
n
t
e
r
e
s
t
l
n
c
o
m
e
6
=
z
z
z
|
6
,
<
,
z
|
,
8
,
|
,
z
a
a
z
,
(
z
;
)
(
z
c
-
)
z
,
a
;
<
.
z
z
,
z
6
6
.
,
c
L
l
v
l
d
e
n
d
l
n
c
o
m
e
z
z
<
o
6
z
a
|
,
<
8
z
,
=
z
|
,
<
z
,
,
,
(
|
,
8
;
)
(
z
,
6
-
)
a
a
o
.
o
8
=
c
.
S
h
u
r
e
o
f
r
e
s
u
l
t
s
o
f
u
s
s
o
c
l
u
t
e
s
z
,
<
8
8
(
|
)
(
z
8
)
(
z
)
,
z
,
<
<
6
z
,
-
z
,
<
<
6
a
.
<
z
,
-
.
8
=
P
r
o
f
l
t
o
n
s
u
l
e
o
f
u
s
s
e
t
s
&
o
t
h
e
r
l
n
c
o
m
e
a
z
=
8
|
a
z
,
z
6
=
,
z
8
-
z
z
|
8
,
6
,
-
-
z
,
o
|
z
,
z
o
-
z
z
z
,
<
|
.
8
6
z
,
6
=
.
,
v
u
l
u
u
t
l
o
n
g
u
l
n
o
n
l
P
6
8
,
,
-
6
)
c
.
c
z
,
z
o
,
c
=
|
,
a
z
|
c
,
8
c
z
|
z
z
,
6
,
6
|
o
,
8
6
;
,
6
<
|
,
c
,
6
,
,
-
6
a
8
,
6
,
6
z
,
a
8
8
=
-
,
c
8
8
(
6
,
8
o
)
(
,
8
6
8
)
<
<
,
6
;
8
o
o
.
o
o
8
,
z
z
c
c
c
.
c
c
L
c
o
n
o
m
i
c
v
a
l
u
e
d
i
s
t
r
i
b
u
t
e
d
C
p
e
r
u
t
l
n
g
c
o
s
t
s
|
8
c
,
8
8
z
;
,
a
;
a
6
,
=
=
,
|
|
,
-
|
,
z
,
=
=
z
<
,
<
a
,
=
,
o
6
6
,
z
c
z
,
|
|
<
,
6
a
o
,
8
a
-
-
,
-
8
,
(
z
,
;
8
8
)
(
z
,
8
=
)
|
;
,
|
6
6
;
.
;
-
,
z
c
z
6
.
,
L
m
p
l
o
y
e
e
w
u
g
e
s
&
b
e
n
e
f
l
t
s
a
6
6
=
6
z
,
o
6
;
z
-
z
;
,
,
;
a
o
,
6
,
;
a
o
-
a
6
a
8
8
<
8
a
6
6
6
,
|
8
=
,
=
6
,
|
8
.
o
|
=
,
=
.
=
c
P
u
y
m
e
n
t
s
t
o
p
r
o
v
l
d
e
r
s
o
f
f
u
n
d
s
z
=
,
,
<
;
|
,
z
c
6
a
<
-
z
z
a
|
z
=
,
-
=
z
,
<
o
-
,
8
8
<
,
a
a
=
,
6
6
,
8
a
)
(
,
8
=
8
)
|
,
<
6
<
6
.
a
o
-
,
8
,
.
c
P
u
y
m
e
n
t
s
t
o
g
o
v
e
r
n
m
e
n
t
<
6
,
z
;
6
8
,
<
|
;
6
,
6
z
;
6
6
=
z
|
a
a
,
=
z
,
|
z
,
,
8
z
,
|
<
.
z
|
z
,
,
8
=
.
,
,
C
o
m
m
u
n
l
t
y
l
n
v
e
s
t
m
e
n
t
s
(
a
)
,
6
8
<
=
z
z
z
z
o
-
|
o
-
8
|
o
o
.
o
<
-
8
c
.
c
8
,
;
;
;
z
,
,
8
8
z
6
,
,
8
z
6
,
z
o
a
8
=
6
,
,
,
,
;
z
-
6
,
z
|
|
=
,
8
-
<
a
,
6
;
,
,
(
a
,
6
|
;
)
(
,
c
-
)
<
o
,
o
a
z
8
.
8
8
-
,
-
,
6
8
6
L
c
o
n
o
m
i
c
v
a
l
u
e
r
e
t
a
i
n
e
d
L
e
p
r
e
c
l
u
t
l
o
n
o
;
|
8
-
6
-
8
8
a
;
z
z
c
,
;
|
;
,
6
,
;
|
;
|
.
,
6
c
-
.
=
c
A
m
o
r
t
l
s
u
t
l
o
n
6
|
8
;
z
(
)
<
z
<
-
c
=
<
a
o
.
;
-
c
=
c
.
6
-
P
r
o
f
l
t
u
f
t
e
r
d
l
v
l
d
e
n
d
s
z
,
z
z
z
6
,
a
<
(
z
)
(
a
)
-
-
8
)
8
a
6
-
c
<
o
)
(
z
)
z
,
6
;
;
z
,
z
8
<
,
<
a
;
-
,
6
,
(
z
,
)
(
8
z
=
)
|
,
|
<
8
6
.
o
|
z
,
8
=
.
R
e
t
u
l
n
e
d
f
o
r
r
e
l
n
v
e
s
t
m
e
n
t
j
g
r
o
w
t
h
z
,
|
a
|
,
z
6
-
,
<
z
8
z
-
6
-
z
a
z
6
6
-
;
a
a
-
-
(
o
|
)
(
8
,
)
z
,
8
8
z
,
;
,
8
o
=
,
6
6
(
z
,
;
|
)
(
8
z
=
)
<
,
6
|
6
o
.
,
8
c
.
c
LCONOMIC vALUL S1A1LMLN1

8;o
1he foundutlon wus luld for the corporute journey of 'ohn leells
Eoldlngs, when two Lngllsh brothers, Ceorge und Ldwln 'ohn set
up L. 'ohn & Co., u flrm of produce und exchunge brokers.
a8
1he flrm merged wlth two London bused teu brokers, vllllum 'us
und Ey 1hompson &Co., und Ceo vhlte &Co., thereby evolvlng lnto
u prlvute llublllty compuny ln the nume of L. 'ohn, 1hompson, vhlte
& Compuny Ltd.
6o
Lver more enthuslustlc to expund lts uctlvltles, the flrm
umulgumuted wlth leell und vuldock Ltd., unother long
estubllshed produce, shure und frelght broklng compuny thus
chunglng lts nume to 'ohn leell 1hompson vhlte Ltd.
;|
1he compuny ucqulred u controlllng stuke ln vulkers 1ours und
1ruvels (Ceylon) Ltd., one of the countrys leudlng lnbound tour
operutors.
;a
1he flrm becume u rupee quoted publlc compuny und took the
nume of 'ohn leells Ltd
86
A newly lncorporuted 'ohn leells Eoldlngs Ltd. ('lE) ucqulred u
controlllng stuke ln 'ohn leells Llmlted und obtulned u quotutlon on
the Colombo Stock Lxchunge umldst u heuvlly oversubscrlbed
publlc shure lssue.
'lE wus lnvolved ln the blggest ever deul ut the tlme, when
vhlttulls group of compunles wus ucqulred thus gulnlng controlllng
stukes ln Ceylon Cold Stores (the country's leudlng producer of
curbonuted soft drlnks und lce creum), Ceylon Eollduy Resorts
(owner of 8entotu 8euch Eotel und Corul Curdens Eotel) und u
stuke ln Unlon Assurunce.
a
'lE becume the flrst Srl Lunkun compuny to obtuln u llstlng ubroud,
und lssued Clobul Leposltory Recelpts (CLRs) thut were quoted on
the Luxembourg Stock Lxchunge.
6
velldhu Resort Eotel, un 8c roomed lslund resort ln the Muldlves,
wus ucqulred muklng lt 'lE's flrst mujor overseus lnvestment.
Nutlons 1rust 8unk (N18) wus estubllshed ln u jolnt venture wlth the
llC und Centrul llnunce Co. Ltd. lortune muguzlne numed 'lECne
of the ten best Aslun stocks to buy. South Aslu Cutewuy 1ermlnuls
(SAC1) the lurgest prlvute sector lnvestment ln Srl Lunku ut thut
tlme commenced operutlons to own, operute und develop the
Cueen Lllzubeth Cuuy ut the port of Colombo.
zooo
'lE wus ruted umong the best -cc smull compunles ln the world by
lorbes Clobul muguzlne. 'lE ulso becume the flrst compuny ln Srl
Lunku to obtuln the SL AAA rutlng from lltch Rutlng Ltd. 'lE wus
udmltted us u full member of the vorld Lconomlc lorum.
Decade at a glance
zoo zooz
'lE wus runked one of the world's best zcc smull compunles, the
only Srl Lunkun entlty to be numed ln the llst by lorbes globul
muguzlne.
zooz zoo|
'lE ucqulred Lunku Murlne Servlces, the bunkerlng fuclllty ut the
port of Colombo. Nutlons 1rust 8unk ucqulred the locul operutlons
of Amerlcun Lxpress.
zoo| zooa
ln the lurgest ever trunsuctlon on the Colombo Stock Lxchunge ut
thut tlme, 'lE ucqulred Aslun Eotels & Propertles, un ucqulsltlon
thut brought wlth lt c per cent of the flve stur room cupuclty ln
Colombo. 1he Croup sold lts =c per cent stuke ln RPl Munugement
Servlces (Pvt) Ltd (lts Pluntutlons munugement compuny).
zooa zoo<
'ohn leells Eotels Llmlted (lEL) wus creuted us u holdlng compuny
for ull Croup resorts. 'lE ucqulred u controlllng stuke ln Mercuntlle
Leuslng Llmlted (MLL). 1he 'ohn leells Soclul Responslblllty
loundutlon, the Croup's CSR urm, wus estubllshed us u churltuble
compuny und reglstered us u voluntury soclul servlce orgunlsutlon.
zoo< zoo6
1he Croup entered lnto u MCU to develop u thlrd resort ln the
Muldlves on Alldhoo lslund. 'lE ucqulred 8c per cent of Yulu vllluge
Eotel. vlth the sule of leells Pluntutlons, the Croup exlted from the
ownershlp of pluntutlons. 'lE entered lnto the 8PCspuce through u
jolnt venture wlth Rumun Roy Assoclutes. 1he Croup ulso luunched
lts new hotel brunds Clnnumon Eotels & Resorts und Chuuyu
Eotels & Resorts. N18 merged wlth Mercuntlle Leuslng Llmlted.
zoo6 zoo;
1he Croup ucqulred u leuse on Lhonvell 8euch und Spu und
Llluldhoo 1ourlst Resort ln the Muldlves. lurthermore, 'lE ucqulred
zc per cent of Assocluted Motorwuys PLC. 'lE lncreused lts stuke ln
South Aslu Cutewuy 1ermlnuls (Pvt) Llmlted by ,.= per cent to --.,=
per cent. 1he Croup exlted lts restuurunt buslnesses wlth the sule of
mujorlty stukes ln leells Restuurunts (Pvt) Llmlted und Crescut
Restuurunts (Pvt) Llmlted. 'ohn leells Eoldlngs Ltd wus renumed us
zoo; zoo8
1he Croup's flrst Clnnumon resort ln the Muldlves, Clnnumon
lslund Alldhoo, commenced operutlons. 1he leuse held by the
Croup ln the velldhu lslund of the Muldlves, explred. 1he
lnternutlonul llnunce Corporutlon (llC), u member of the vorld
8unk group, slgned u long term fundlng urrungement umountlng to
USL ,= mllllon to support the Croup's expunslon pluns. , per cent
stuke leells 8uslness Systems Ltd wus dlvested.
zoo8 zoo
'lE ucqulred u further 8. per cent ln South Aslu Cutewuy
1ermlnuls (Pvt) Llmlted und ulso lncreused stukes ln Unlon
Assurunce PLC, Ceylon Cold Stores PLC, 'ohn leells PLC und leells
lood Products PLC. 1he prlvutlsutlon of Lunku Murlne Servlces (Pvt)
Ltd wus declured null und vold us per judgement dellvered by the
Supreme Court. 1he stuke ln Assocluted Motorwuys PLC wus
dlvested. Acqulred u per cent stuke ln Cuutrro llnunce &
Accountlng Solutlons.
zoozoo
Pleuse refer Cperutlng hlghllghts und slgnlflcunt events sectlon.
BIS1ORY OI 1BL 1OBNkLLLLS CROUP
-
-=
DLCADL A1 ACLANCL
,st Varcn zoo zoo zoo8 zoo; zoo6 zoo< zooa zoo| zooz zoo
s. millions
OPLRA1INC RLSUL1S
Croup revenue a;,8o ,cz- ,8c= -z,8== z,6- z-,z-z zz,z8= 6,,8 ,,,, ,8zz
L8l1 ;,o8 ,,86 8,, 6,= ,8=c -,=6 -,=8 ,- ,zc6 ,=z8
llnunce expenses (,|;o) (,6=) (,68) (,-) (=z=) (c) (=8) (-z) (-z) (zzz)
Shure of results of ussoclutes z,<<6 z,-c z,z- ,,c =8 8-- ,c- = -zz z66
Proflt before tux 6,<|; 6,zz 6,=8c ,8c ,-z= -,66 z,-- -, 88z ,-c=
1ux expense (8<) (,-z,) (,c==) (8=z) (8) (66) (z86) (-6) (zc) (-c)
Proflt ufter tux <,<<z ,6= =,=z= -, -,=c6 z,=zc z,c, 6z =z ,cc
Lxtruordlnury ltem 8=
Proflt for the yeur <,<<z ,6= =,=z= -, -,=c6 z,,c= z,c, 6z =z ,cc
Attributable to:
Lqulty holders of the purent <,zo ,,-- =, -,=c -,c6 z,z ,c= =z =- ,8c
Mlnorlty lnterest |< z-z c6 c z zcz 6 zz
<,<<z ,6= =,=z= -, -,=c6 z,,c= z,c, 6z =z ,cc
CAPI1AL LMPLOYLD
Stuted cupltul z|,|zz zz,=z= zz,6 zz,z6 ,zc= ,c= ,cc= z,, z,6 z,6zc
Cupltul reserves ;,<;a ,,-, 6,c -,-, z,8= z,= ,8z ,-8 ,6-z ,,88
Revenue reserves 8,|6 =,== , -,c8, c,c 6,686 =,== ,z8 ,cz8 -,8-
a,8|z =,=c, -,-, -8,,c zz,c- ,,86 6,z ,c- 8,-= 8,z,
Mlnorlty lnterest 6,a|o ,6c ,,,c -,66 -,6-c -,,z ,-6 z,c=, ,8cz ,=
1otul equlty <6,z6z =c,6, 8,6, z,66 z=,66 z,6c8 z,-,8 ,c,c c,=- c,zc6
1otul debt ;,a<| z,=6 z,66, =,-6- =,-z, ,c= ,c=6 ,z -,=68 z,=88
;|,;< ,z,c6- 6c,8- =,,=z -c,88 -c,,- z=,- =, -,,z z,,
ASSL1S LMPLOYLD
Property, plunt und
equlpment (PP&L) z,8 z,6= z8,-8 ,688 8,z- ,z 8,c- , 8,z8 ,-=
Noncurrent ussets
other thun PP&L |a,oa --,=6 ,z8 ,,,-c 8,8=c 6,c-- -,6 -,, -,c- z,z6
Current ussets |a,<66 z8,,8 z-,c z,,,= ,,8 -,=8 ,,8 6,- ,z- 8,-c
Llubllltles net of debt (za,aa) (zc,c,6) (c,=) (,,68) (,,,6-) (8,zc8) (6,6) (,c6) (,,8) (6,)
;|,;< ,z,c6- 6c,8- =,,=z -c,88 -c,,- z=,- =, -,,z z,,
CASB ILOW
Net cush flows from
operutlng uctlvltles ,;a ,6 6, z,=z- z,66 ,6zc -,-8 ,8 , ,6-8
Net cush flows from j (used ln)
lnvestlng uctlvltles (z,oa) (-,,z) (,-=) (c,c88) (z,88) (,8z) (6,,6) (z,ccz) (,cc) (,z6)
Net cushflows from j (used ln)
flnunclng uctlvltles (6|6) z,--z (6,z6z) 8,zz (,cz,) z, =, (-) (--c) (6=)
Net lncreuse j (decreuse) ln
cush und cush equlvulents ;,o6a z,=c6 (-,,c,) c,8=, (,z) c ,8c6 (z) (8z) (z68)
kLY INDICA1ORS
8uslc eurnlngs per shure (Rs.) 8.a ,.= 8.c 6. =.- .c -.6 c. . .
lnterest cover (no. of tlmes) <.8 ., =. ., .z 8.8 6.z 6.= -., 6.
Net ussets per shure* (Rs.) 8o.a ,. 68.z 6.6 =,.c 6. =,. =z.- =. .6
Lnterprlse vulue z,6oa -,--6 ,6,,- =,6z 6,-8 ,,zzz --,=,8 =,8 ,68 ,z
Lv j L8l1LA . .- ,.8 -.c c., c.c . =.= =. z.c
Lebt j equlty rutlo () |.o z.8 z6.- -6. zc.8 z.c 8.- -., -=. z6.
Llvldend puyout ,8aa ,88- -,,6 ,z ,, ,c,= ,z6 -z --c -=-
Current rutlo (no. of tlmes) z. z. .8 . .z .z .6 .z . .
Murket prlce per shure
unudjusted (Rs.) 8a.o 6z.8 .8 ==.c =,.8 -,.= .c ,c.8 =8.c --.=
Murket prlce per shure dlluted (Rs.) 8a.o 6z.8 8.8 =-., -.= 8z.= 6c.= z. z-.8 -.8
* Net ussets per shure hus been culculuted bused on the net ussets of the group und number of shures ln lssue us ut the end of euch yeur.
-6
INDICA1IvL US DOLLAR
IINANCIAL S1A1LMLN1S
8alance sheet
Ior information purposes only
Croup Company
ln uS 'ooos estateJ
ASSL1S
Noncurrent assets
Property, plunt und equlpment z6|,o<8 z=,-,- ; ,,-
Leusehold property ao,a6 ,--,
lnvestment property zo,a;8 zc,= ;,886 ,,,8z
lntunglble ussets zz,azz z-,c- |z
lnvestments ln subsldlurles und jolnt ventures a< o,8a ,c,6
lnvestments ln ussoclutes z<,< z,-=z ;, 68,8-
Cther lnvestments ;|,88 ,=,,=z 6; ,,c,
Leferred tux ussets ,< ,z8c
Cther noncurrent ussets <,z =,=,z <z; ,--
<6z,za =8,6z z8,|z z=6,8z
Current assets
lnventorles zo,|z ,=- ; ,
lnvestments held for sule z -
1rude und other recelvubles 8;,|8 ,8, ;,aa 6,,--
Amounts due from reluted purtles zo z a,6;a ,,-6
Short term lnvestments 6,|o; -z,8 8,z8o 8,,
Cush ln hund und ut bunk z6,a| ,,,6, ;z
|o|,zo z8,=8 oz,z| c,,6c
1otal assets 86<,az| ,,,=- |8|,aaa -6,-
LOUI1Y AND LIA8ILI1ILS
Lquity attributable to equity holders of the parent
Stuted cupltul zoa,<8z ,,z zoa,<8z ,,z
Cupltul reserves 66,a|< 6,-,c
Revenue reserves 66,o8 -,== 8,;a =6,=cz
a|;,z< --,8- z86,<<6 z=,,
Minority interest <6,| z,-=
1otal equity a|,<za -6,8z8 z86,<<6 z=,,
Noncurrent liabilities
lnsurunce provlslons |,<<8 =,-=
Nonlnterest beurlng borrowlngs <8 8z
lnterest beurlng borrowlngs z,a< z,,=,8 6o,ooo c,,-=
Leferred tux llubllltles 6,8<; 6,,z8
Lmployee beneflt llubllltles ,|< 8,z8- 8| ,
Cther deferred llubllltles a =
Cther noncurrent llubllltles ,88 z,-,,
zza,o8 zc,6z8 6o,8| ,=-
Current liabilities
1rude und other puyubles ;;,;8 =6,-c |,o| -,c
Amounts due to reluted purtles < - z6
lncome tux llubllltles |,8< ,=z
Short term borrowlngs ,|6 ,,
Current portlon of lnterest beurlng borrowlngs |6,<;o =,,-z z;,<oa 6,,-
Llvldend puyuble <,a|a <,a|a
8unk overdrufts zz,6oo z,6, 8 ,-c
a;,8o zc,c8, |6,o;< z,8=
1otal equity and liabilities 86<,az| ,,,=- |8|,aaa -6,-
Lxchunge rute a.oo =.=- a.oo =.=-
INDICA1IvL US DOLLAR IINANCIAL S1A1LMLN1S
-,
Income statement
Ior information purposes only
Croup Company
ln uS 'ooos Restated
Revenue azo,8;; -==,c8 a,;;a =,c8
Cost of sules (|z|,8o;) (z,c,6c) (z,o) (,z=)
Cross profit ;,o;o 8,z z,;<< -,=
Llvldend lncome |86 6= |,|a; z,c
Cther operutlng lncome aa,oaz -z,--c ,|a| 6,=-8
Llstrlbutlon expenses (8,z) (-,,)
Admlnlstrutlve expenses (6|,|8) (=z,-6) (<,;|) (=,,z=)
Cther operutlng expenses (|,oa) (,6) (|88) (-8)
llnunce expenses (z,o) (,6,-) (6,z86) (,,c-)
Chunge ln fulr vulue of lnvestment property -= =,
Shure of results of ussoclutes zz,azo zc,z=8
Proflt on sule of noncurrent lnvestments 8,8, c,,z
Profit before tax <;,|a8 =,= a,o|z -8,z6z
1ux expense (8,6az) (,8-) (a6) ()
Profit for the year a8,;o6 z,, ao,886 -,,,68
Attributable to:
Lqulty holders of the purent a<,6z c,6c
Mlnorlty lnterest |,o;; z,c
a8,;o6 z,,
Lxchunge rute a.oo =.=- a.oo =.=-
1hls lnformutlon does not constltute u full set of flnunclul stutements ln compllunce wlth SLAS. 1he ubove should be reud together wlth
the Audltors' oplnlon und the notes to the flnunclul stutements. Lxchunge rutes prevulllng ut euch yeur end huve been used to convert
the lncome stutement und bulunce sheet.
-8
CROUP RLAL LS1A1L POR1IOLIO
Net book value
8uildings Land in acres zoo zoo
Owning company and location in (Sq. It) Ireehold Leasehold Rs.'ooos Rs.'ooos
PROPLR1ILS IN COLOM8O
Sluve lslund Complex, Colombo z. ,6== ., -.z z8,6z -,z
'ohn leells Eoldlngs PLC.
-zc, Unlon Pluce, Colombo z. 8,zc . 88z,<o 88=,66
'ohn leells PLC.
-c, Clennle Street , Colombo z. zz,--8 .,8 c.=8 6<,;a6 6zc,-6
=6j, =8, =8 j llrulupone Avenue, Colombo =. c.c8 ,z<o ,z=c
'ohn leells Propertles (Pvt) Ltd.
z=, Clennle Street, Colombo z. -c,8c c. ;,az 8,==8
leells Reultors Ltd.
z, & z, lerguson Roud, Colombo =. z,,,=c .zz z|,|zo z,6
Mucklnnon & leells llnunclul Servlces Ltd.
Leyden 8ustlun Roud, York Street, Colombo c. -,6=6 c.= z;o,|o8 z,,8-z
No zc, St. Mlchuels' Roud, Colombo c-. =,,6 c.-- 66,aao =8=,zzz
8, vuuxhull Street, Colombo z. 6z,88 -.c6 |,88| z,,6
=c,8- .-z -.,c a,6zo,8| ,=6c,--6
PROPLR1ILS OU1SIDL COLOM8O
luduwelu. zz,- z6.= <z,a; ==,8
1rlncomulee. z,c= . |o,oz -c,cz
'uykuy Murketlng Servlces (Pvt) Ltd.
-8=, Negombo Roud, vuttulu. z,8zc c.-c 8,zoz ,==6
Llberty Pluzu, Colombo -. c,ccc
-88, Culle Roud, Mount Luvlnlu. 6,ccc c.z 6,6| ,,6,
'ohn leells PLC.
,j, 1emple Roud, Lkulu, 'uLlu. z.6 <,ooo =,ccc
'ohn leells vurehouslng (Pvt) Ltd.
Muthurujuwelu. ,z,6 6.cc a6,o|; ,=
leells lood lndlu (Pvt) Ltd.
M =6jA, Creuter lullush Murket Purt ll, New Lelhl. c.c o z,6-6
leells lood Products PLC.
, 1emple Roud, Lkulu, 'uLlu. =c, -.cc -.z6 z<,ao| z,=-8
1eu Smullholder luctorles PLC.
8roudlunds. =8,c6- . ao,z -,,=
Eulwltlgulu. =6,686 .6c z,|o -c,6,8
Elndul Cyu. c,=cc c.88 ,;|8 ,,,8
Elngulgodu. =6,,6 8.z, |a,z -=,,8z
luruwltu. ,=,,= .8 8,zao ,=8
lurupunuwu. 6z,c z.z6 |8,; -,6,
Neluwu. 6,,c8 .,z |,a|6 -z,z6
New Punuwennu. ,,,z c.= |o,o8z -c,-,-
Pusgodu. c,-= =. z,;6 z,6
Pellyugodu. -,6-- c. ;,ooo ,,ccc
Ruxuwu. z,6z- .zz ,z; ,=68
CROUP RLAL LS1A1L POR1IOLIO
-
Net book value
8uildings Land in acres zoo zoo
Owning company and location in (Sq. It) Ireehold Leasehold Rs.'ooos Rs.'ooos
PROPLR1ILS OU1SIDL COLOM8O
1runswureLoglstlcs (Pvt) Ltd.
1udellu, 'uLlu. 6-,6,c 8.8 |6<,<<6 -,z,6=-
No c6,Rujuplhlllu Roud, lurunegulu. z,,c c.zc |z,ao z,88
=c, 8udullu Roud, Nuwuru Lllyu. ,-6 c.6 6,8o8 6,c
,c88,8c .6 =.8 ,86a,azo ,8,6,=
BO1LL PROPLR1ILS
Aslun Eotels und Propertles PLC.
Clnnumon Crund Premlses, Colombo z. 68,8- .c 8,o<,o;< 8,=c,zz
Crescut 8oulevurd, Colombo z. =,6 ,<,a6o ,c,ccc
8eruwulu Eollduy Resorts (Pvt) Ltd.
8eruwulu. .,z z|,8o
Ceylon Eollduy Resorts Ltd.
8entotu 8euch Eotel & Club lntersport, 8entotu. zc,-=6 c.,c .cz az,o6 --,8
Corul Curdens Eotel , Elkkuduwu. 6,,-=c .-6 6,|a| 68,,
Centrul Luundry, vuruhenu. 6,c .c z8,<8o z,-z6
luntuseu vorld lnvestments (Pte) Ltd.
Chuuyu Lugoon Eukuru Euruu, Republlc of Muldlves. z,68z -.z <zo,<86 =,c,c8
Euburunu Lodge Ltd.
1he Lodge, Euburunu. ,6c6 z=., a6|,ozo ,=,zz
Euburunu vulk lnn Ltd.
Chuuyu vllluge, Euburunu. 6z,-z- .- z,88| ,=z6
lnternutlonul 1ourlsts und Eotellers Ltd.
Eotel 8uyroo, 8eruwelu. 6.== zz|,8z ,8,ccc
'ohn leells Muldlvlun Resorts (Pte) Ltd.
Chuuyu lslund Lhonvell, Republlc of Muldlves. z=,=8 8.6z z,a;,<a8 z,6zc,,zc
lundy vulk lnn Ltd.
1he Chuuyu Cltudel, lundy. 6,,z= =., |6,<oa -c8,=
Resort Eotels Ltd.
Nlluvell. ,8= .-, o;,oo c,,cc
Rujuwellu Eotels Compuny Ltd.
Muhuberlutennu, lundy. -,,cc c.cc |6,oo -6,c
1runs Aslu Eotels PLC.
Clnnumon Luke Slde, Colombo z. z=,6z8 ,.zc |,8;,688 -,6z,c,
1runqulllty (Pte) Ltd.
Clnnumon lslund Alldhoo, Republlc of Muldlves. z=,ccc -6.6 |,z6,;a -,=c,6=
1ruvel Club (Pte) Ltd.
Chuyuu Reef Llluldhoo, Republlc of Muldlves. ,,8,6 -.,= ,88;,6; z,c,6=6
1rlnco Eollduy Resorts (Pvt) Ltd.
Chuuyu 8lu, 1rlncomulee. c8,z z.z 8;,o68
1rlnco vulk lnn Ltd.
Club Cceunlc, 1rlncomulee. 8,6c 6.cc <,< z--,z,
vlruwllu vulk lnn Ltd.
Rundunukelle Lstute, vlruwllu. z=.= |z,<68 -z,=,
Yulu vllluge (Pvt) Ltd.
1he vllluge, Yulu. 6,,--c c.cc z|a,o z-8,,c
-,-=,cc z,.6 6c. z|,8z,a; z-,8z,6z8
Consollduted vulue of lund und bulldlngs ,,--,8-- z6. ,.6= |o,a68,8 -c,-z,=c=
c
1RANSPOR1A1ION
Ports and Shipping
keells Shipping (Pvt) Ltd (oo)
Shlpplng ugency representutlon & loglstlcs servlces
No. , York Street, Colombo
: z,=zcc
Llrectors: S C Rutnuyuke Chulrmun,
' R l Pelrls, R M Luvld,
L L Rumunuyuke (resigneJ w.e.j ,o.o6.zoo)
Stuted cupltul: Rs. =cc,ccc
Mackinnon Mackenzie &Co (Shipping) Ltd (.6)
No. , Leyden 8ustlun Roud, Colombo
: z-c,=z6
Stuted cupltul: Rs. =,ccc,ccc
Maersk Lanka (Pvt) Ltd (|o)
Shlpplng ugency representutlon & frelght
forwurdlng servlces
No. -6, L. R vljewurdene Muwuthu, Colombo c
: zz-,cc
Llrectors: v 1 Llluwulu, Llnesh Lul, R M Luvld
Robert 'unvun 1rooljen (appointeJw.e.j o.o;.zoo),
Rlzwun Sultun All (appointeJ w.e.j o.o;.zoo),
E C Mudsen (resigneJ w.e.j o.o;.zoo)
Eurlhurun lyer (resigneJ w.e.j o.o;.zoo)
Stuted cupltul: Rs. c,ccc,ccc
South Asia Cateway 1erminals (Pvt) Ltd (az.)
Ports & shlpplng servlces
Port of Colombo, P.C. 8ox , Colombo .
: z=,=cc
A L Cunewurdene, ' R l Pelrls, R M Luvld,
C luo Cheng, E C Mudsen, E M 'epsen,
E C vleske, Lr S S Seneruth,
L C Aluguruthnum, N leppetlpolu,
l N ' 8ulendru (AppointeJ w.e.j o.o;.zoo),
C Menkhorst (AppointeJ w.e.j ,.o;.zoo)
L Luff (resigneJ w.e.j z;.o,.zoo),
' E Mudsen (resigneJ w.e.j 8.o,.zoo),
L L Rumunuyuke (resigneJ w.e.j ,o.o6.zoo),
Stuted cupltul: Rs. -,,88,8=,cc
Logistics
DBL keells (Pvt) Ltd (<o)
Lxpress courler servlces
No. 8, vuuxhull Street, Colombo z.
: z-c-c j ,86cc
R M Luvld, M A Montelro, S P C Cng
Stuted cupltul: Rs. zc,ccc,czc
1ohn keells Logistics (Pvt) Ltd (oo)
lntegruted supply chuln & thlrd purty loglstlcs solutlons
: z,=zcc
' R l Pelrls, R M Luvld, A.L. Cunuwurdene,
Stuted cupltul: Rs. zcc,ccc,ccc
1ohn keells Logistics India (Pvt) Ltd (oo)
(lormuly known us Mutheson leells Lnterprlses (Pvt) Ltd)
No.zz, th lloor, Cxford Puluzzo,
Rustumbugh Muln Roud, Cff Alrport Roud,
8ungulore =6cc,, lndlu
: (c8c)zcccc, zcccc=
R M Luvld, R S lernundo,
L L Rumunuyuke (resigneJ w.e.j oz.o;.zoo),
Stuted cupltul: Rs. zc,,c,
1ohn keells Logistics Lanka (Pvt) Ltd (oo)
(lormuly known us Muck lnternutlonul lrelght (Pvt) Ltd)
lnternutlonul frelght forwurder & loglstlcs servlces
: z,=zcc
Stuted cupltul: Rs. 6=,ccc,ccc
Lanka Marine Services (Pvt) Ltd (.aa)
lmporter & suppller of heuvy murlne fuel olls
& lubrlcunts
No. , Leyden 8ustlun Roud, Colombo
: z,=zcc
A L Cunewurdene, ' R l Pelrls,
R M Luvld, R S lernundo
Stuted cupltul: Rs. -=c,ccc,ccc
Mackinnon Mackenzie &Co of Ceylon Ltd (.<)
lorelgn recrultment ugents & consultunts
: z,=zcc
' R l Pelrls, R M Luvld
Stuted cupltul: Rs. c,ccc
1ransware Logistics (Pvt) Ltd (<o)
lntegruted contulner depot. operutlons &
loglstlcs servlces
No.=c,=cj, Pumunugumu Roud, 1udellu, 'uLlu
: zz-z=,, 8,
' R l Pelrls, R M Luvld, 2 M Amln,
C l Llung (resigneJ w.e.j ,o.z.zoo)
Stuted cupltul: Rs. zzc,ccc,ccc
Whittall 8oustead Ltd Cargo Division (.6)
lnternutlonul frelght forwurder & loglstlcs servlces
No.8, vuuxhull Street Colombo z
: z,=z
S Rujendru
Stuted cupltul: Rs. ,-c,-cc
Airlines
1ohn keells Air Services India (Pvt) Ltd (oo)
(lormuly known us Mutheson leells Alr
Servlces (Pvt) Ltd)
Cenerul sules ugents for ulrllnes ln lndlu.
No.zz, th lloor, Cxford Puluzzo,
Rustumbugh Muln Roud, Cff Alrport Roud,
8ungulore =6cc,, lndlu
: (c8c)zcccc, zcccc=
R M Luvld, R S lernundo,
L L Rumunuyuke (resigneJ w.e.j oz.o;.zoo),
Stuted cupltul: Rs. ,,=,c,
Mack Air (Pvt) Ltd (oo)
Cenerul sules ugents for ulrllnes
No. A, York Street, Colombo
: 'et Alrwuys z,=-,=
' R l Pelrls, R M Luvld, C N Luwrence,
Stuted cupltul: Rs. z,=cc,ccc
Mack Air Services Maldives (Pte) Ltd (a)
Cenerul sules ugents for ulrllnes ln Muldlves
th lloor, S1C Alfuunu 8ulldlng,
8oduthukurufuunu Mugu, Mule zcc=
: 6c---,c8 c
' R l Pelrls, R M Luvld, S Eumeed, A Shlhub
Stuted cupltul: Rs. 6,,,8
Mackinnons 1ravels (Pvt) Ltd (oo)
(lormully known us Mucklnnons Amerlcun Lxpress 1ruvel
(Pvt) Ltd)
lA1A uccredlted truvel ugent und truvel reluted servlces
Ceylon Cold Stores 8ulldlng
No. , 'ustlce Akbur Muwuthu, Colombo z
: z-86cc z-86
R M Luvld,
' R l Pelrls (AppointeJ w.e.j o.o;.zoo),
l l Mukerjl (resigneJ w.e.j ,o..zoo),
L L Rumunuyuke (resigneJ w.e.j ,o.o6.zoo),
M lupur (appointeJ w.e.j ,o.o;.zoo anJ
resigneJ w.e.j ,o..zoo)
LLISURL
Botel Management
keells Botel Management Services Ltd (oo)
Munuger & murketer of resort hotels
No.-c, Clennle Street, Colombo z.
: z-c66cc, zzc8
' L P lehelpunnulu
Stuted cupltul: Rs. ,=zc,ccc
1ohn keells Maldivian Resorts (Pte) Ltd (8z.)
Eoldlng compuny of hotel compunles ln Muldlves
,nd lloor,E.Mlzun 8ulldlng,
Sosun Mugu, Mule, Republlc of Muldlves
: cc6c ---,-8 jcc6c --z6z
' L P lehelpunnulu
Stuted cupltul: Rs.z,,68,68
1ohn keells Botels PLC (8z.)
Eoldlng compuny of group resort hotel compunles
ln Srl Lunku & Muldlves
: z-c66cc
A L. Cunewurdene, ' R l Pelrls,
' L P lehelpunnulu, M A Cmur, R 1 vljeslnhu,
L A Cubruul,
C S A Cunusekuru (resigneJ w.e.j ,o.o6.zoo)
Stuted cupltul: Rs.,=cc,z6,-
1ohn keells Botels Mauritius (Pvt) Ltd (8z.)
Eoldlng compuny of hotel compunles ln the Muurltlus
llS Court, 1wentyLlght, Cyberclty, Lbene,Muurltlus
: (z-c) 6, -ccc
Llrectors: l L 'oory Chulrmun
A L Cunewurdene, ' R l Pelrls, l Soreefun
Stuted cupltul: Rs.8,-=
City Botels
Asian Botels and Properties PLC Cinnamon Crand (8|.8o)
Cwner & operutor of the flve stur clty hotel "Clnnumon
Crund"
,,, Culle Roud, Colombo -
: z-,-, jz,z
A L Cunewurdene, ' R l Pelrls, R ' lurunurujuh,
8 M Amurusekeru, l Sumuruwlckrumu,
S Rujendru,
A R Cunusekuru (AppointeJ w.e.j o8.o.zoo),
S l C Senunuyuke (AppointeJ w.e.j o8.o.zoo),
S A 'uyusekuru (AppointeJ w.e.j o8.o.zoo),
M 1 L lernundo (resigneJ w.e.j o.o8.zoo)
Stuted cupltul: Rs.-,-=,8,cz
1rans Asia Botels PLC (8<.oz)
Cwner & operutor of the flve stur clty hotel "Clnnumon
Lukeslde".
No. =,Slr Chlttumpulum A. Curdlner Muwuthu, Colombo z.
: zccc
A L Cunewurdene, ' R l Pelrls, L S ' Pelpolu,
N L Coonerutne, R L Nunuyukkuru,
A R Cunusekuru
Stuted cupltul: Rs.,z,8,,,=c
Resort Botels Sri Lanka
8eruwala Boliday Resorts (Pvt) Ltd (o.za)
Cwner of Reul Lstute
: z-c66cc, zzc8
Llrectors: SCRutnuyuke Chulrmun(AppointeJw.e.j zz.o.zoo),
A L Cunewurdene (AppointeJ w.e.j zz.o.zoo),
' R l Pelrls (AppointeJ w.e.j zz.o.zoo)
Stuted Cupltul: Rs. 66,ccc,ccc
Ceylon Boliday Resorts Ltd8entota 8each Botel (8.8)
Cwner & operutor of 8entotu 8euch ln 8entotu
Culle Roud, 8entotu
: c- zz,=,6 j c- zz,=z66
' L P lehelpunnulu
Stuted cupltul: Rs. z=8,8c-,-
CROUP DIRLC1ORY
CROUP DIRLC1ORY
Ceylon Boliday Resorts Ltd Coral Cardens Botel (8.8)

Cwner & operutor of Corul Curdens ln Elkkuduwu
P.C 8ox , Culle Roud, Elkkuduwu
: c zz,,cz-j c zz,,z
A L Cunewurdene,
' R l Pelrls, ' L P lehelpunnulu
Stuted cupltul: Rs. z=8,8c-,-
Babarana Lodge Ltd (8.<z)
Cwner & operutor of " Clnnumon Lodge" ln Euburunu
P.C 8ox z, Euburunu
: c66 zz,cczj c66 zz,cc,z
Llrectors: S C Rutnuyuke Chulrmun, A L Cunewurdene,
' R l Pelrls, ' L P lehelpunnulu,
C S A Cunusekuru, (resigneJ w.e.j ,o.o6.zoo)
Stuted cupltul: Rs.-,===,z6z
Babarana Walk Inn Ltd (8.88)
Cwner & operutor of Chuuyu vllluge ln Euburunu
P.C 8ox , Euburunu
: c66 zz,cc6,j c66 zz,cc,,
' L P lehelpunnulu
Stuted cupltul: Rs. z6,-=c,ccc
International 1ourists and Boteliers Ltd (8o.;)
Cwner of reul estute
: z-c66cc, zzc8
A L Cunewurdene, ' R l Pelrls ,
' L P lehelpunnulu, E C Arruwuwulu,
v M S lernundo, L C Alugurutnum
Stuted cupltul: Rs. 8,=z=,z=
kandy Walk Inn Ltd (8.<6)
Cwner & operutor of Chuuyu Cltudel ln lundy
No.z, Srlmuth ludu Rutwutte Muwuthu, lundy
: c8 zz--6=6j c8 zz-,z,-
' R l Pelrls, ' L P lehelpunnulu, R 1 Molllgodu
Stuted cupltul: Rs. =,8z,cc
Ra[awella Botels Ltd (8z.)
: z-c6,8c, zzc8
A L Cunewurdene, ' R l Pelrls
Stuted cupltul: Rs. zc,ccc,ccc
Resort Botels Ltd (8.8)
: z-c6,8c, zzc8
Stuted cupltul: Rs. ,=c,c,c
1rinco Boliday Resorts (Pvt) Ltd (8z.)
Cwner & operutor of Chuuyu 8lu ln 1rlncomulee
Alles Curden, Uppuvelll, Sumputhlv Post
: zzc8
Llrectors: SCRutnuyuke Chulrmun(AppointeJw.e.j o..zoo),
A L Cunewurdene (AppointeJ w.e.j o..zoo),
' R l Pelrls (AppointeJ w.e.j o..zoo)
Stuted Cupltul: Rs.-=,,ccc,ccc
1rinco Walk Inn Ltd (8z.)
Cwner of Reul Lstute
Alles Curden, Uppuvell,Sumputhlv Post,
1rlncomulee
: cz6 zzc8, z-c66cc
' L P lehelpunnulu
Stuted cupltul: Rs.,8=c,c,c
Wirawila Walk Inn Ltd (8z.)
: z-c6,8c, zzc8
A L Cunewurdene,
' R l Pelrls (AppointeJ w.e.j o.o;.zoo),
Yala village (Pvt) Ltd (;;.;a)
Cwner und operutor of "Yulu vllluge" ln Yulu
P.C 8ox ,llrlndu, 1lssumuhurumu
: c, zz-=z
Llrectors: M A Pereru Chulrmun
S C Rutnuyuke, A L Cunewurdene, ' R l Pelrls,
' A Luvls, ' L P lehelpunnulu
Stuted cupltul: Rs.,z,,6cc
Resort Botels Maldives
Iantasea World Investments (Pte) Ltd (8z.)
Cwner & operutor of "Chuuyu Lugoon Eukuruu Euruu" ln
Muldlves
: cc6c 6,zcc jcc6c 6,zcc6=
Stuted cupltul: Rs. -,=,-,c
1ohn keells Maldivian Resorts (Pte) Ltd (z.6)
Cperutor of "Chuuyu lslund Lhonvell " ln Muldlves
: cc6c ---,-8 jcc6c --z6z
' L P lehelpunnulu
Stuted cupltul: Rs.z,,68,68
1ranquility (Pte) Ltd (8z.)
Cwner und operutor of "Clnnumon lslund Alldhoo" ln
Muldlves
: 6c 6=cjcc6c6=c==zc
Llrectors: S C Rutnuyuke Chulrmun
A L Cunewurdene , ' L P lehelpunnulu
Stuted cupltul: Rs.==z,=,6c8
1ravel Club (Pte) Ltd (8z.)
Cperutor of "Chuuyu Reef Llluldhoo" ln Muldlves
,nd lloor,E.Mlzun 8ulldlng, Sosun Mugu, Mule,
: cc6c 666c8- jcc6c 666c66
Stuted cupltul: Rs. -,,z,ccc
Destination Management
Serene Bolidays (Pvt) Ltd (8.8a)
1our operutors
z, Mldus, Shur pluzu,'8 Cpltuls Nugur,
Andherl, lurlu Roud, Andherl (Lust),
Mumbul cc c= ,lndlu
: czzcc=-c-68
Llrectors: A L Cunewurdene, v Leelunundu
Stuted cupltul: Rs.zz,,=8,,6
Walkers 1ours Ltd (8.<)
lnbound tour operutors
: z-c6ccc
' R l Pelrls, v Leelunundu
Stuted cupltul: Rs. =,-,,zcc
Whittall 8oustead (1ravel) Ltd (oo)
lnbound tour operutors
No.-c, Clennle Street Colombo z.
: z-c6ccc
Llrectors: S C Rutnuyuke Chulrmun, A L
Cunewurdene, ' R l Pelrls, v Leelunundu
Stuted cupltul: Rs. ,,=cc,ccc
PROPLR1Y
Property Development
Asian Botels and Properties PLC Crescat 8oulevard,
1he Monarch, 1he Lmperor (8|.8o)
Leveloper und munuger of lntegruted propertles
No.,,, Culle Roud, Colombo -
: ==cc
A L Cunewurdene, ' R l Pelrls, R ' lurunurujuh,
8 M Amurusekeru, l Sumuruwlckrumu,
S Rujendru
A R Cunusekuru (appointeJ w.e.j o8.o.zoo),
S l C Senunuyuke (appointeJ w.e.j o8.o.zoo),
S A 'uyusekuru (appointeJ w.e.j o8.o.zoo)
M 1 L lernundo
(eceaseJ/ceaseJ to be a irector on o.o8.zoo)
Stuted cupltul: Rs. -,-=,8,cz
Real Lstate
1 k Properties (Pvt) Ltd (oo)
Property developers
: z-c6ccc jzzc
A L Cunewurdene, ' R l Pelrls, S Rujendru
Stuted cupltul: Rs.zc,ccc,c-c
keells Realtors Ltd (<.<6)
Cwner of reul estutes
: z-c6ccc jzzc
A L Cunewurdene, ' R l Pelrls, S Rujendru
Stuted cupltul: Rs.,=,ccc,ccc
Whittall 8oustead Ltd Real Lstate Division(.6)
Rentlng of offlce spuce
No. 8, vuuxhull Street,Colombo z.
: z-z6 jz-z,8c=
S Rujendru
Stuted cupltul: Rs.,-c,-cc
CONSUMLR IOODS ANDRL1AIL
Consumer Ioods
Ceylon Cold Stores PLC (8o.a;)
8everuges, frozen confectlonery, processed
meuts, dlury products und holdlng
compuny of 'uyluy Murketlng Servlces (Pvt) Ltd.
No. , 'ustlce Akbur Muwuthu, Colombo z
: z-z8zzj,, z-8,,,
A L Cunewurdene, ' R l Pelrls, ' R Cunurutne,
U P Llyunuge, P S 'uyuwurdenu, A R Rusluh
Stuted cupltul: Rs. z,c,zcc,ccc
keells Iood Products PLC (8|.8)
Munufucturer und dlstrlbutor of brunded
meut und convenlence food products.
P.C 8ox c,No.6, Mlnuwungodu Roud, Lkulu
'uLlu
: zz-6-,j zz-6-6
A L Cunewurdene, ' R l Pelrls, ' R Cunurutne,
R Plerls S E Amurusekeru, A L L l Pereru,
M P 'uyuwurdenu
Stuted cupltul: Rs. z,,8=,ccc
1ohn keells Ioods India (Pvt) Ltd (8|.8)
Munufucturer und dlstrlbutor of brunded meut
und convenlence food products.
M=6jA Creuter lullush murket Purt ll
New Lelhl cc8
: cc ,6cc-cc -
' R l Pelrls, ' R Cunurutne
Stuted cupltul:Rs.8-,-z,zcz
keells Iood Products Mauritius (Pvt) Ltd (8|.8)
lnvestment holdlng compuny ln Muurltlus
: (z-c) 6, -ccc
Llrectors: S C Rutnuyuke Chulrmun (AppointeJ w.e.j,),
A L Cunewurdene, ' R l Pelrls , l Soreefun,
l L 'oory
Stuted cupltul: Rs.8,-=
Retail
1aykay Marketing Services (Pvt) Ltd (8o.a;)
Cperutor of "leells Super" chuln of supermurkets
No.z=, Clennle Street, Colombo z
: z--,z j z--,8
' R l Pelrls, M R N 'uyusunderuMorues,
l N ' 8ulendru
Stuted cupltul: Rs.8,ccc,ccc
IINANCIAL SLRvICLS CROUP
1ohn keells Stock 8rokers (Pvt) Ltd (o.oa)
Shure broklng servlces
: z66= jz--8c66 j ,c,z, cz-c6z=c
Llrectors: A L Cunewurdene Chulrmun,
S C Rutnuyuke, ' R l Pelrls, l N ' 8ulendru
Stuted cupltul: Rs.,,=cc,ccc
Nations 1rust 8ank PLC (z.)
Commerclul bunklng und leuslng operutlons
No. zz, Unlon Pluce, Colombo z.
: ---
Llrectors: A L Cunewurdene Chulrmun
' R l Pelrls , A l Cunurutne, L E vljenulke,
C E S l Plyurutnu, A R Rusluh, L veerukoon,
M L vlckremeslnghe
l N ' 8ulendru (appointeJ w.e.j o.z.zoo),
S C Rujukurunu (appointeJ w.e.j ,.o.zoo),
2 E 2uvuhlr (resigneJ w.e.j. zo.o8.zoo) ,
S C Rutnuyuke (resigneJ w.e.j. o.z.zoo)
Stuted cupltul us ut Rs.,-6,,6-,cc
z
Union Assurance PLC (8o.6 )
Llfe und generul lnsurunce underwrlters
No.zc, St. Mlchuels' Roud, Colombo -
: zz8z8
' R l Pelrls, M A 1hurmurutnum,
l N ' 8ulendru, A l Cunurutne,
Ashun de 2oysu, Ceruld Le Surum
E A Rehmunjee (resigneJ w.e.j ,o.o.zoo)
Stuted cupltul: Rs.-88,--,ccc
INIORMA1ION1LCBNOLOCY
I1 Services
Information Systems Associates (a)
Softwure development servlces ln 8uhruln
P.C 8ox. -z, Sujuuh, UAL
: ,6=c888c
Llrectors: A. All, L.Eubburd, A Eumduny, ' R l Pelrls,
C S Lewuruju, R S lernundo
Stuted cupltul: Rs.,,=,z,
1ohn keells Computer Services (Uk) Ltd (oo)
Softwure development servlces (Ul)
z68,8uth Roud,Slough, SLl L, Unlted llngdom
: ,=-,z=z8-
C S Lewuruju , R S lernundo
Stuted cupltul: Rs.,=c,
1ohn keells Computer Services (Pvt) Ltd (oo)
Softwure servlces
: z-cc,,c,,
S C Rutnuyuke, ' R l Pelrls, C S Lewuruju,
R S lernundo
Stuted cupltul: Rs. 6,=cc,ccc
1ohn keells Software 1echnologies (Pvt) Ltd (oo)
Murketer of softwure puckuges
: z-cc,,c,,
' R l Pelrls, C S Lewuruju, R S lernundo
Stuted cupltul: Rs. 8,ccc,ccc
Office Automation
1ohn keells Office Automation (Pvt) Ltd (oo)
Leulers ln offlce uutomutlon equlpment
No.-zcj, Unlon Pluce, Colombo z
: z-=,6 j ,cz6 , z--ccc
' R l Pelrls, C S Lewuruju, R S lernundo
I1 Lnabled Services
Auxicogent Alpha (Pvt) Ltd (oo)
lnvestment holdlng compuny
llS Court, z8, Cyberclty,Lbene, Muurltlus
: (z-c) 6, -ccc
A L Cunewurdene, ' R l Pelrls, l L 'oory,
l Soreefun, l N ' 8ulendru, R S lernundo
Stuted Cupltul: Rs. 6,,z-,,8-
Auxicogent Boldings (Pvt) Ltd.(oo)
Eoldlng compuny of Auxl group compunles
: (z-c) 6, -ccc
A L Cunewurdene, ' R l Pelrls , l L 'oory,
l Soreefun, RS lernundo(appointeJw.e.j z.oz.zoo),
l N ' 8ulendru (appointeJ w.e.j z.oz.zoo),
R M Luvld (resigneJ w.e.j,)
Stuted cupltul: Rs. ,=,,cc,ccc
Auxicogent International (Pvt) Ltd (oo)
: (z-c) 6, -ccc
A L Cunewurdene, ' R l Pelrls , l.L 'oory,
l Soreefun, R Luttu, R Roy, R S lernundo,
l N ' 8ulendru (appointeJ w.e.j z.oz.zoo),
R M Luvld (resigneJ w.e.j .oz.zoo),
Stuted cupltul: Rs. ,66,,cc,cc8
Auxicogent International Lanka (Pvt) Ltd (oo)
8PC operutlons
No., Leyden 8ustlun Roud, Colombo
: z,=-,=
A L Cunewurdene, ' R l Pelrls ,R M Luvld,
R S lernundo
Stuted cupltul: Rs.-zz,8zz,c=c
Auxicogent International US Inc (oo)
Munugement of the US bused Sules 1eum for Cuutrro
8uslness Support Servlces
Centerwood Lrlve, 1urpon Sprlngs,
llorldu -688
: ,z,zc,-6
Llrector: Ldwurd Culntero
Stuted cupltul: Rs.=-8,z=c
Auxicogent Investments Mauritius (Pvt) Ltd (oo)
: (z-c) 6, -ccc
A L Cunewurdene , ' R l Pelrls , l L 'oory,
l Soreefun, l N ' 8ulendru, R S lernundo
R Roy (appointeJ w.e.j oo.o,.zoo),
R Luttu (appointeJ w.e.j oo.o,.zoo)
Stuted Cupltul: Rs. 68,c8=,66
InfoMate (Pvt) Ltd (oo)
l1 enubled servlces
No.-zcj, Unlon Pluce, Colombo z
: z-8zz jz-8zc
Llrectors: S C Rutnuyuke, ' R l Pelrls, M ' S Rujukurlur,
R S lernundo
Stuted cupltul: Rs.zc,ccc,ccc
Ouatrro 8usiness Support Services (Pvt) Ltd (a)
(lormuly known us Auxlcogent 8PC Solutlons (Pvt) Ltd)
8PC operutlons
A6j, vusunt vlhur, New Lelhl
: z =6ccc
Llrectors: ' R l Pelrls Chulrmun,
Sunll Ruwul, Upendru Slngh, R S lernundo,
l N ' 8ulendru
Stuted cupltul: Rs. zz,=cc,ccc
Ouatrro Iinance and Accounting Solutions (Pvt) Ltd (aa)
l1 bused servlces, electronlc remote processlng
servlces, e servlces
A6j, vusunt vlhur, New Lelhlcc=,
Llrectors: Suresh Subrumunlun, R S lernundo,
v 8ulukrlshnun, l N ' 8ulendru, C M Sorluno
v Srlnlvusun (appointeJ w.e.j z.o6.o8),
Stuted cupltul: Rs. ,8,8--,czc
O1BLRS
Plantation Services
1ohn keells PLC (86.o )
Commodlty brokers
: z-c6ccc jzzc
A L Cunewurdene, ' R l Pelrls, S 1 Rutwutte,
l L v Rutnuyuke, 1 de 2oysu,
Y A 'ordon Eunsen,
L L Rumunuyuke (appointeJ w.e.j o.o;.zoo),
C S A Cunesekeru (resigneJ w.e.j ,o.o6.zoo),
Stuted cupltul: Rs.=z,ccc,ccc
1ohn keells (1eas) Ltd (oo)
Munugement of bought teu fuctorles & others
: z--=88c,z-c6=cc
'RlPelrls, LLRumunuyuke(appointeJw.e.jo.o;.zoo),
Stuted cupltul: Rs. zc,ccc
1ohn keells Warehousing (Pvt) Ltd (86.o)
vurehouslng of rubber und teu
No.-,st Lune,leruwulupltlyu, vuttulu,
Muturujuwulu
: 8=6c
Llrectors: S C Rutnuyuke Chulrmun, ' R l Pelrls,
L L Rumunuyuke (appointeJ w.e.j o.o;.zoo),
C S A Cunesekeru (resigneJ w.e.j ,o.o6.zoo)
Stuted cupltul: Rs.zc,ccc,ccc
1ea Smallholder Iactories PLC (|;.6z)
Cwner und operutor of fuctorles for teu smullholders
-zcj, Unlon Pluce,Colombo z
: z--=88c j =--zc,
L E vljenulke,R Seevurutnum,
R L Rumbukwellu, A S 'uyutllleke,
' S Rutwutte,
L L Rumunuyuke (AppointeJ w.e.j o.o;.zoo),
Stuted cupltul: Rs.=c,ccc,ccc
Centre &Others
Central Bospital (Pvt) Ltd (z6.8)
Provlders of heulthcure servlces
, Norrls Cunul Roud , Colombo c
: 666ccc
Llrectors: A l Puthlruge, S Sellluh, L S Rujupukse,
L vlmulusunderu, l M P lurunurutne,
S L Nlmulusurlyu, S A 8 Rujupuksu,
A L Cunewurdene, l N ' 8ulendru
E L l Eettluruchchl, C L E Premurutne
Stuted cupltul: Rs.-,c-z,,8,=
Iacets (Pvt) Ltd (oo)
: z-c6ccc
Stuted cupltul: Rs.=c,ccc
1ohn keells Boldings PLC
Croup holdlng compuny & functlon bused servlces
: z-c6ccc jzzc
L l C Ameruslnghe, Steven Lnderby,
P L Rodrlgo, 1 Lus, S S 1hlruchelvum,
Stuted cupltul: Rs.zz,8,6,,,,=c=
1ohn keells Boldings Mauritius (Pvt) Ltd (oo)
Eoldlng compuny ln the Muurltlus
llS Court,z8, ,Cyberclty,Lbene,Muurltlus
: z-c6,-ccc
A l Soreefun, A L Cunewurdene, ' R l Pelrls,
l L 'oory
Stuted cupltul: Rs.c,,,==,6,c
1ohn keells International (Pvt) Ltd (oo)
Reglonul holdlng compuny provldlng udmlnlstrutlve
& functlon bused servlces
: z-c6ccc jzzc
Stuted cupltul: Rs. ,==,ccc,ccc
1 k Packaging (Pvt) Ltd (oo)
Prlntlng und puckuglng servlces provlder
for the export murket
No.-c, Clennle Street, Colombo z
: z,=-c8
R.M.Luvld, R S lernundo
Stuted cupltul: Rs.,=cc,ccc
1ohn keells Singapore (Pte) Ltd (8o)
lnternutlonul trudlng servlces
No.-, Ruffles Pluce,#c,c,
8hurut 8ulldlng, Slnguporec86,
: 6= 6,-z6-6
R M Luvld, R Ponnumpulum
Stuted cupltul: Rs.,6-8,ccc
keells Consultants Ltd (8.|)
Compuny secreturlul servlces to the group
: zzc
A. L Cunewurdene, ' R l Pelrls,
L C Alugurutnum
Stuted cupltul: Rs.6c,ccc
Mackinnon and keells Iinancial Services Ltd (.8)
Rentul of offlce spuce
No. , Luyden 8ustlun Roud, Colombo
: z,=cz-
A. L Cunewurdene, ' R l Pelrls , S Rujendru
Stuted cupltul: Rs.c,8cc,ccc
Mortlake Ltd (oo)
lnvestment compuny
: z,=-c8
L C Alugurutnum (AppointeJ w.e.j o.o;.zoo),
Stuted cupltul: Rs. -,ccc
Nexus Networks (Pvt) Ltd (.)
Cperutor of u loyulty curd progrumme
No. z=, Clennle Street, Colombo z.
: z--,z j z--,8
' R l Pelrls , M R N 'uyusunderu Morues,
l N ' 8ulendru
Stuted cupltul: Rs.cc,ccc
-
SRI LANkANLCONOMY
Summary Indicator Units 8 zooo zoo zooz zoo| zooa zoo< zoo6 zoo; zoo8 zoo
CLP Crowth Per cent ., .- 6.c (.=) .c =. =. 6.z ,., 6.8 6 |.<
CLP(current prlces) Rs. 8llllon ,c8 ,c6 ,z=8 ,c ,=8z ,8zz z,c z,=- z,- -,=,8 , a,8z<
CLP(current prlces) USL 8llllon =.8 =., 6. 6.- ,. 8. zc., z. z8.- -z.- -.6 a.|z
CLP per Cupltu (USL) Crowth Per cent 8.c (.8) .z (6.=) -. .c 8.6 zc.= .= =.c z-.- .
CLP per cupltu (murket prlces) Rs.ccc =6.8 6c., 68. ,=. 8-.z ., c,. z., ,.8 ,8.8 z8.z z|<.
CLP per cupltu (murket prlces) USL 8, 86- 8 8 8,c 8 ,c-c ,z ,z ,6- z,c z,o<|
lnflutlon (CCPl cc=zccz ) YoY Per cent -.c ,. -.= 8.8 . a.8
Current Account 8ulunce USL 8llllon (c.z) (c.6) (.) (c.z) (c.z) (c.c,) (c.6) (c.,) (.=) (.) (.) (o.z)
Current Account of CLP Per cent (.) (-.6) (6.) (.) (.) (c.) (-.) (z.,) (=.-) (.z) (.=) (o.<)
Populutlon Mllllon 8.8 .c . 8.8 .c .- .= ., . zc.c zc.z zo.<
Lxchunge Rute (Annuul Averuge) USLjRs. 6.= ,c. ,=.8 8. =., 6.= c.z cc.= c.c c.6 c8.- a.
Lxchunge Rute Chunge (Annuul Averuge) Per cent .= .c ,., ,. ,.c c. .8 (c.,) -. 6. (z.) 6.
zm 18lll yleld (yrend) Per cent z.6 z.8 8.z -., . 8.c ,., c. -.c zc.c .z .||
Prlme Lendlng Rute (yrend) Per cent . =. z.= .- z.z .- c.z z.z =.z 8.c 8.= o.
Mzb Money supply growth Per cent -.z -. z. -.6 -. =.- .6 . ,.8 6.6 8.= 8.6
Lxports USL 8llllon .8 .6 =.= .8 ., =. =.8 6.- 6., ,., 8. ;.
lmports USL 8llllon =. 6.c ,.- 6.c 6. 6., 8.c 8. c.- .- . o.z
8ulunce of Puyments Per cent of CLP c.z (.,) (-.) .- z.c z., (.c) z. c., .6 (-.=) 6.6
8udget Leflclt Per cent of CLP (.z) (,.=) (.=) (c.) (8.=) (,.-) (,.=) (,.c) (,.c) (6.) (,.c) (.8)
Unemployment Rute Per cent .z 8. ,.6 ,. 8.8 8. 8.- ,.z 6.= 6.c =. <.8
All Shure lndex (yrend) Polnts =, =,- 8 6z 8= ,c6z ,=c, ,zz z,,zz z,= ,6-.8 |,;za.6
1ourlst Arrlvuls No.ccc -8 -6 cc --, -- =c =66 = =6c -8.= aa;.
Sources: C8SL, lMl
zcc wus u yeur of restrulned growth, not only for Srl Lunku, but ulso
for the whole world. Lue to thls construlned growth und thereby u
decreuse ln globul commodlty prlces, the hlgh levels of lnflutlon seen
ln zcc8 were fust contulned ucross muny countrles. Srl Lunku, belng
no exceptlon recorded u lower uveruge unnuul lnflutlon flgure of -.
per cent. Cn the demundslde, lnflutlon wus controlled vlu the tlght
monetury pollcy lmplemented, whllst on u supplyslde, the lower
globul commodlty prlces pluyed u cruclul role.
1he key mucro level event thut took pluce ln zcc wus the end of the
three decude wur. As u result of thls, quurterly CLP showed u
promlslng uptlck durlng the thlrd und fourth quurters of zcc. 1he
stock murket performed very well wlth the ASPl recordlng u z= per
cent lncreuse for zcc. 1hls key domestlc event, together wlth the
expected globul recovery ln zcc mukes the Srl Lunkun economlc
cllmute seem lncreuslngly uttructlve for lnvestment und growth
purposes. 1he Covernment's lnltlutlve on upgrudlng the
lnfrustructurul front of the country ls u key fuvouruble polnt ln thls
regurd.
1he 8ulunce of Puyments returned to deplctlng u posltlve flgure, un
encouruglng reversul relutlve to the negutlve number shown ln zcc8.
1he current uccount deflclt contructed slgnlflcuntly us u result of the
dlp ln lmports due to the economlc slowdown ln Srl Lunku for the
yeur. Although the comlng yeurs should see the current uccount
expund, the overull 8ulunce of Puyments cun be expected to remuln
posltlve drlven by strong lnflows through the cupltul uccount.
1he Srl Lunku growth forecust for zcc by the lMl (=.=) und AL8
(6) ure hlgher thun thut uchleved ln zcc, yet lower thun thut of the
C8SL forecust of u 6.= growth. 1hls belng suld, ugency forecusts do
see moderute upwurd pressure on lnflutlon for zcc.
Year that Was
Srl Lunku's reul CLP growth slowed to -.= ln zcc, u drop from the
prevlous yeur's 6. Crowth ln ull three sectors decllned, wlth servlces,
the lurgest component of the economy, growlng by -.- compured
to =.6 lust yeur. 1hls growth wus led by the hotels und restuurunts,
trunsport und communlcutlon, und Covernment servlce segments.
1he wholesule und retull segment contructed mulnly due to the
slowdown ln overull economlc uctlvlty.
1he lndustrlul sector grew by .z compured to =. lust yeur wlth
the munufucturlng sector growlng by -.-. Constructlon und mlnlng
& quurrylng uctlvltles ulso performed well ln thls sector, recordlng
growth rutes of =.6 und 8.z respectlvely.
Crowth ln the Agrlculture sector fell to -.z from ,.= lust yeur. A
polnt worth notlng ls thut the strong buoyunt teu prlces ln zcc
helped mltlgute the loss from lower productlon levels. A drop ln
productlon ln teu, puddy und tobucco ulso negutlvely uffected the
ugrlculturul sector.
1he unnuul unemployment rute lncreused to =.8, un lncreuse from
the =. recorded ln zcc8, whllst the per cupltu lncome rose to US
dollurs z,c=- (u . growth vs. the z-.- growth recorded ln zcc8).
Cross Nutlonul Product grew by .8 YoY ln zcc.
Cver the yeur, there wus u slowdown ln uggregute demund, wlth
growth ln consumptlon und lnvestment demund ln reul terms loslng
puce to . und z.6 ln zcc from z8.8 und z.= respectlvely ln
zcc8. 1hls belng suld the export of goods und servlces decreused by
=. compured to u growth of =.z ln zcc8.
lnflutlon slowed down, wlth un unnuul uveruge lncreuse of -. und u
polnt to polnt percentuge chunge of .8 ln zcc (compured to .
YoY ln zcc8). 8y Murch zcc the YoY growth hud reuched 6.- und ls
expected to show upwurd pressure durlng the rest of the yeur.
lnterest rutes ln ull murkets huve remulned ut the loose levels slnce
the rute reductlons through zcc.
Lxport eurnlngs ln zcc were US dollurs ,,c8= mllllon, u decreuse of
z.,. 1hls belng suld, Agrlculturul und lndustrlul exports decreused
by 8. und -.8 respectlvely. lndustrlul exports contlnued to be
domlnuted by textlles & gurments, but stronger growth ln other
lndustrlul exports led to the contlnuutlon of the recent trend of u
fulllng rellunce on gurment exports. lt ls lmportunt to note here thut
ull segments of the lndustrlul export cutegory recorded decreuses ln
growth.
lmports decreused by z,.6 to reuch US dollurs c,zc6.6 mllllon, us u
result of ull lmport cutegorles decreuslng. Petroleum lmports
contrlbuted c to the growth ln overull lmports. Eowever the
hlgher growth of exports compured to the growth of lmports helped
contruct the trude deflclt.
Eelped by the contructed current uccount deflclt, the bulunce of
puyments recorded u surplus of US dollurs z,,z= mllllon. 1he gross
offlclul reserves excludlng ACU recelpts rose to un ull tlme hlgh level
of US dollurs =,c, mllllon. Clven the nuture of the composltlon (job
wlse) of Srl Lunkuns worklng ubroud, remlttunces durlng zcc
remulned strong, lndependent of the globul recesslon. llnully, Net
lLl lnflows, decreused to US dollurs -8 mllllon.
Lurlng zcc, tourlst urrlvuls rose by z. to ,,8c from -8,,=
wltnessed ln zcc8. 1he end of the confllct led to u posltlve revlslon of
muny truvel udvlsorles und thus suw un lnflux of tourlsts durlng the
postwur perlod of zcc. Accordlngly, gross tourlst recelpts
lncreused by 8.z (vs. the z. decreuse ln zcc8). Cf the tourlsts, the
hlghest growth rute wus recorded ln those comlng for hollduy
purposes (.6 growth) whllst those comlng for buslness purposes
lncreused moderutely (by -.-).
1he All Shure Prlce lndex (ASPl) rose by z, YoY to -,,z.6 polnts on
Murch -st zcc from ,6-.8 polnts the prevlous yeur, whllst the
Mllunku Prlce lndex (MPl) rose by , YoY. 1hls wus drlven prlmurlly
by the lnvestor confldence generuted wlth the end of the wur.
CLOSSARY OI IINANCIAL 1LRMS
Accrual basis
Recordlng revenues &expenses ln the perlod ln whlch they ure eurned
or lncurred regurdless of whether cush ls recelved or dlsbursed ln thut
perlod.
8eta
Covurlunce between dully murket return und dully 'lE shure return
dlvlded by vurlunce of dully 'lE shure return over u perlod of = yeurs.
Capital employed
Shureholders' funds plus mlnorlty lnterest und debt.
Capital structure leverage (CSL)
Averuge totul ussets dlvlded by uveruge shureholders equlty.
Cash earnings per share
Proflt ufter tux udjusted for non cush ltems mlnus shure of ussoclute
compuny proflts plus dlvldends from ussoclute compunles dlvlded by
the welghted uveruge number of ordlnury shures ln lssue durlng the
perlod.
Cash interest and tax cover
Cush flow from operutlons before worklng cupltul chunges dlvlded by
cush lnterest und tux puyments.
Cash ratio
Cush plus short term lnvestments dlvlded by current llubllltles.
Cash to price earnings
Llluted murket prlce per shure dlvlded by dlluted cush eurnlngs per
shure.
Common earnings leverage (CLL)
Proflt uttrlbutuble to equlty holders of the purent dlvlded by proflt
ufter tux.
Contingent liabilities
A condltlon or sltuutlon exlstlng ut the bulunce sheet dute due to pust
events, where the flnunclul effect ls not recognlsed becuuse:
. the obllgutlon ls crystulllsed by the occurrence or non
occurrence of one or more future events or,
z. u probuble outflow of economlc resources ls not expected or,
-. lt ls unuble to be meusured wlth sufflclent rellublllty.
Current ratio
Current ussets dlvlded by current llubllltles.
Debtjequity ratio
Lebt us u percentuge of shureholders' funds und mlnorlty lnterest.
Diluted earnings per share (LPS)
Proflt uttrlbutuble to equlty holders of the purent dlvlded by the
welghted uveruge number of ordlnury shures ln lssue durlng the
perlod udjusted for optlons grunted but not exerclsed.
Dividend payout ratio
Llvldend us u percentuge of compuny proflts udjusted for non cush
gulns ltems.
Dividend yield
Llvldends udjusted for chunges ln number of shures ln lssue us u
percentuge of the shure prlce ut the end of the perlod.
Larnings per share
Proflt uttrlbutuble to equlty holders of the purent dlvlded by the
welghted uveruge number of ordlnury shures ln lssue durlng the
perlod.
L8I1
Lurnlngs before lnterest und tux (lncludes other operutlng lncome).
L8I1 margin
L8l1 dlvlded by turnover lncluslve of shure of ussoclute compuny
turnover.
L8I1DA
Lurnlngs before lnterest, tux, depreclutlon und umortlsutlon.
Lffective rate of taxation
1ux expense dlvlded by proflt before tux.
Lv (enterprise value)
Murket cupltullsutlon plus net debt.
Interest cover
Consollduted proflt before lnterest und tux over flnunce expenses.
Long termdebt to 1otal debt
Long term louns us u percentuge of totul debt.
Market capitalisation
Number of shures ln lssue ut the end of perlod multlplled by the
murket prlce ut end of perlod.
Market value added
Murket cupltullsutlon mlnus shureholder's funds.
Net assets
1otul ussets mlnus current llubllltles mlnus long term llubllltles mlnus
mlnorlty lnterest.
Net assets per share
Net ussets dlvlded by the number of shures ln lssue.
Net debt (cash)
1otul debt mlnus (cush plus short term deposlts).
Net profit margin
Proflt ufter tux dlvlded by turnover lncluslve of shure of ussoclute
compuny turnover.
Net working capital
Current ussets mlnus current llubllltles.
Price earnings ratio
Murket prlce per shure (dlluted) over dlluted eurnlngs per shure.
Price to book ratio
Murket prlce per shure (dlluted) over net usset vulue per shure.
Ouick ratio
Cush plus short term lnvestments plus recelvubles, dlvlded by current
llubllltles.
Return on assets
Proflt ufter tux dlvlded by the uveruge totul ussets.
Consollduted proflt before lnterest und tux us u percentuge of uveruge
cupltul employed.
Return on equity
Proflt uttrlbutuble to shureholders us u percentuge of uveruge
shureholders' funds.
Sales to assets ratiojtotal asset turnover
1urnover lncludlng shure of ussoclute compuny turnover dlvlded by
uveruge totul ussets.
Share turn ratio
1otul volume of shures truded durlng the yeur dlvlded by uveruge
number of shures ln lssue.
Shareholders funds
1otul of stuted cupltul, cupltul reserves und revenue reserves.
1otal debt
Long term louns plus short term louns und overdrufts.
1otal equity
Shureholders funds plus mlnorlty lnterest.
1otal shareholder return
(P Pc L) j Pc x cc
P = Murket prlce ut the end of the flnunclul yeur
Pc = Llluted murket prlce ut the end of the prevlous flnunclul
yeur
L = Adjusted dlvldend for the yeur
=
Name of company
Legal form
Publlc Llmlted Llublllty Compuny
lncorporuted ln Srl Lunku ln ,
Crdlnury Shures llsted on the Colombo Stock Lxchunge
CLRs llsted on the Luxembourg Stock Lxchunge
Company registration No.
PC
Directors
S C Rutnuyuke Chulrmun
A L Cunewurdene Leputy Chulrmun
' R l Pelrls
L l C Ameruslnghe
1 Lus
S Lnderby
P L Rodrlgo
S S 1lruchelvum
Senior Independent Director
L l C Ameruslnghe
Audit Committee
P L Rodrlgo Chulrmun
L l C Ameruslnghe
S Lnderby
S S 1lruchelvum
L l C Ameruslnghe Chulrmun
P L Rodrlgo
S S 1lruchelvum
Nominations Committee
1 Lus Chulrmun
S Lnderby
S C Rutnuyuke
S S 1lruchelvum
8ankers
8unk of Ceylon
Cltlbunk NA
Commerclul 8unk
Leutsche 8unk AC
LlCC 8unk
LlCC vurdhunu 8unk
Eutton Nutlonul 8unk
Eongkong und Shunghul 8unklng Corporutlon
lClCl 8unk
Nutlons 1rust 8unk
Pun Aslu 8unklng Corporutlon
People's 8unk
Sumputh 8unk
Seylun 8unk
Stundurd Churtered 8unk
Depository for CDRs
Cltlbunk NA
New York
Registered office of the company
-c Clennle Street
Colombo z
Srl Lunku
Contact details
P.C.8ox ,6
-c Clennle Street
Colombo z
Srl Lunku
lnternet : www.keells.com
Lmull : jkh@keells.com
Secretaries and Registrars
leells Consultunts Llmlted
-c Clennle Street
Colombo z
Srl Lunku
1elephone : () z-c 6z=
lucslmlle : () z- c-,
Investor Relations
P.C. 8ox ,6
-c Clennle Street
Colombo z
Srl Lunku
1elephone : () z-c 66,
() z-c 6ccc
lucslmlle : () z-c 66c
lnternet : www.keells.com
Lmull : lnvestor.relutlons@keells.com
Contact for media
Corporute Communlcutlons Llvlslon
P.C. 8ox ,6
-c Clennle Street
Colombo z
Srl Lunku
1elephone : () z-c 6
lucslmlle : () , ,,c6
Auditors
Lrnst & Young
Churtered Accountunts
P.C. 8ox c
Colombo
Srl Lunku
CORPORA1L INIORMA1ION
6
Notlce ls hereby glven thut the 1hlrty llrst Annuul Cenerul
Meetlng of 'ohn leells Eoldlngs PLC wlll be held on z8 'une
zcc ut c.cc u.m. ut 1he Audltorlum, 1he lnstltute of
Churtered Accountunts of Srl Lunku, -cA, Mululusekeru
Muwuthu (Longdon Pluce), Colombo ,.
1he buslness to be brought before the meetlng wlll be:
to reud the notlce convenlng the meetlng.
to recelve und conslder the Annuul Report und llnunclul
Stutements for the llnunclul Yeur ended - Murch zcc wlth
the Report of the Audltors thereon.
to reelect us Llrector, Mr. ' R l Pelrls, who retlres ln terms
of Artlcle 8 of the Artlcles of Assoclutlon of the compuny.
to reelect us Llrector, Mr. A LCunewurdene, who retlres ln
terms of Artlcle 8 of the Artlcles of Assoclutlon of the
compuny.
to reelect us Llrector, Mr. 1 Lus who ls over the uge of ,c
yeurs und who retlres ln terms of sectlon zc of the
Compunles Act No. , of zcc,, for whlch notlce of the
followlng ordlnury resolutlon hus been glven by u member:
1EA1 the uge llmlt stlpuluted ln Sectlon zc of the
Compunles Act No. , of zcc, shull not upply to Mr. 1 Lus,
who ls , yeurs und thut he be reelected u Llrector of the
compuny.
to uuthorlse the dlrectors to determlne und muke
donutlons.
to reuppolnt Audltors und to uuthorlse the dlrectors to
determlne thelr remunerutlon.
to conslder uny other buslness of whlch due notlce hus
been glven.
8y order of the bourd
'CEN lLLLLS ECLLlNCS PLC
keells Consultants Limited
Secretaries
, Vay zoo
Notes:
l. A member unuble to uttend ls entltled to uppolnt u Proxy
to uttend und vote ln hlsjher pluce.
ll. A Proxy need not be u member of the Compuny.
lll. A member wlshlng to vote by Proxy ut the Meetlng muy
use the Proxy lorm enclosed.
lv. ln order to be vulld, the completed Proxy lorm must be
lodged ut the Reglstered Cfflce of the Compuny not less
thun 8 hours before the meetlng.
NO1ICL OI MLL1INC
,
IORMOI PROXY
ljve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . of
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . belng u
memberjs of 'ohn leells Eoldlngs PLC hereby uppolnt
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . of
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or fulllng hlmjher
MR. SUSAN1EA CEAMlNLA RA1NAYAlL of Colombo, or fulllng hlm
MR. A'l1 LAMCN CUNLvARLLNL of Colombo, or fulllng hlm
MR. 'AMLS RCNNlL lLLl1US PLlRlS of Colombo, or fulllng hlm
MR. LMMANULL lRANlLYN CAMlNl AMLRASlNCEL of Colombo, or fulllng hlm
MR. 1ARUN LAS of lndlu, or fulllng hlm
MR. S1LvLN LNLLR8Y of lndlu, or fulllng hlm
MR. PARAlRAMA LLvASlRl RCLRlCC of Colombo, or fulllng hlm
MRS. Sl1ElL SU8AENlYA 1lRUCELLvAM of Colombo
us myjour proxy to represent mejus und vote on myjour behulf ut the 1hlrty llrst Annuul Cenerul Meetlng of the Compuny
to be held on z8 'une zcc ut c.cc u.m. und ut uny udjournment thereof, und ut every poll whlch muy be tuken ln
consequence thereof.
Slgned on thls duy of 1wo 1housund und 1en.
.
Signature/s oj SnarenolJer/s
NO1L:
lNS1RUC1lCNS AS 1C CCMPLL1lCN Cl PRCY lCRM ARL NC1LL CN 1EL RLvLRSL.
8
INS1RUC1IONS AS 1OCOMPLL1IONOI PROXY
. Pleuse perfect the lorm of Proxy by fllllng ln leglbly your full nume und uddress, slgnlng ln the spuce provlded und fllllng
ln the dute of slgnuture.
z. 1he completed lorm of Proxy should be deposlted ut the Reglstered Cfflce of the Compuny ut No. -c, Clennle Street,
Colombo z, not luter thun 8 hours before the tlme uppolnted for the holdlng of the Meetlng.
-. lf the lorm of Proxy ls slgned by un Attorney, the relevunt Power of Attorney should uccompuny the completed lorm of
Proxy for reglstrutlon, lf such Power of Attorney hus not ulreudy been reglstered wlth the Compuny.
. lf the uppolnter ls u compuny or Corporutlon, the lorm of Proxy should be executed under lts Common Seul or by u duly
uuthorlsed offlcer of the compuny or Corporutlon ln uccordunce wlth lts Artlcles of Assoclutlon or Constltutlon.
=. lf thls lorm of Proxy ls returned wlthout uny lndlcutlon of how the person uppolnted us Proxy shull vote, then the Proxy
shull exerclse hlsjher dlscretlon us to how hejshe votes or, whether or not hejshe ubstulns from votlng.
Pleuse flll ln the followlng detulls:
Nume : ..............................................................................................................................
Address : ..............................................................................................................................
...............................................................................................................................
...............................................................................................................................
'olntly wlth : ..............................................................................................................................
Shure lollo No. : ..............................................................................................................................
www.keells.com

JOHN KEELLS HOLDINGS PLC ANNUAL REPORT 2021/2022 HIGHLIGHTS

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

JOHN KEELLS HOLDINGS PLC ANNUAL REPORT 2021/2022 HIGHLIGHTS

Uploaded by

Copyright:

Available Formats

JOHN KEELLS HOLDINGS PLC

sevenfold lncreuse over zcc8jc [zcc8jc: Rs. z8 mllllon|. ln

INDUS1RY CROUP ANALYSIS

complant wtn explanaton

vhen the group's shure of losses ln un ussoclute equuls or

.;.|. Rental income

As at ,st Varcn zoo zoo

LCONOMIC vALUL S1A1LMLN1

Ceylon Boliday Resorts Ltd Coral Cardens Botel (8.8)

You might also like